Can comparative benefit change over time, Business Economics

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Can comparative benefit change over time?

Comparative benefit is a dynamic concept. A country can obtain or lose comparative advantage overtime when there is a change within relative efficiency as measured through opportunity cost ratios.

For illustrations in the instant aftermath of WW2 economists advised Japan to specialise within the rice production. They avoided the expert advice. Wide-ranging investment, a skilled labour force and technical expertise saw Japan obtain a comparative advantage into the production of cars and electronics.


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