When it comes to economic efficiency and trade it all comes down to a country’s comparative advantage. The comparative advantage is basically when a country is very excelled in a certain area or production of certain objects or materials and other countries can trade with this one country and that one country’s comparative advantage will increase. Comparative advantage can easily be put into play when there are no or few trade barriers. The reduction of trade barriers allows countries to excel in specific industries and maximize the efficiency of their economies. Although the specialization of economies can create instabilities, imbalances in labor, and national self sufficiency, it is said that countries can benefit from comparative advantage, regardless of their development status, they can gain from a division of labor because of trade. This connects to globalization because without trade barriers it connects countries on a global scale. Countries can produce what they create best and gain from trading it with other countries. And vice versa, they can trade with a country that is able to mass produce a particular item that country can not produce as effectively and
When it comes to economic efficiency and trade it all comes down to a country’s comparative advantage. The comparative advantage is basically when a country is very excelled in a certain area or production of certain objects or materials and other countries can trade with this one country and that one country’s comparative advantage will increase. Comparative advantage can easily be put into play when there are no or few trade barriers. The reduction of trade barriers allows countries to excel in specific industries and maximize the efficiency of their economies. Although the specialization of economies can create instabilities, imbalances in labor, and national self sufficiency, it is said that countries can benefit from comparative advantage, regardless of their development status, they can gain from a division of labor because of trade. This connects to globalization because without trade barriers it connects countries on a global scale. Countries can produce what they create best and gain from trading it with other countries. And vice versa, they can trade with a country that is able to mass produce a particular item that country can not produce as effectively and