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Countries are indulged in trade because there are mutual gains from trade. But then, what are these gains which they obtain, and how are these realized? Comparative advantage theory provides the answers to such questions. The theory says that countries will gain by specializing in it and then exporting the good they have a comparative advantage or lower opportunity of the cost advantage in.
Opportunity cost theory
Identify and explain the three basic economic question that the group of survivors will have to answer everyday
Explanation with critical appraisal
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