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What is comparative advantage and why is it important in international trade

What is comparative advantage and why is it important in international trade

1. International Trade

a. What is comparative advantage, and why is it important in international trade?

b. Steve and Craig have been shipwrecked on a deserted island in the South Pacific. Their economic activity consists of either gathering pineapples or fishing. We know Steve can catch four fish in one hour or harvest two baskets of pineapples. In the same time Craig can reel in two fish or harvest two baskets of pineapples. Which task should Steve and Craig specialize in?

Answer preview to What is comparative advantage and why is it important in international trade

What is comparative advantage and why is it important in international trade

APA

1695 words

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