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musickatia [10]
1 year ago
15

Based on the definition of specialization and comparative advantage, what area in the world could be said to have a comparative

advantage in oil production?
Social Studies
1 answer:
horrorfan [7]1 year ago
6 0

The area in the world that could be said to have a comparative advantage in oil production is Saudi Arabia

<h3>Who has the comparative advantage in the production?</h3>

If someone can create something for less money than anyone else, they have a comparative advantage. Comparative advantage is different from superiority in a given field.

The ability of an economy to produce a specific good or service at a lower opportunity cost than its trading counterparts is known as comparative advantage. Comparative advantage is a theory that explains why businesses, nations, or people might gain from trade.

Recall that the potential cost of creating commodities was used to define comparative advantage. Saudi Arabia has a comparative edge in oil production because it makes the fewest sacrifices per barrel of oil. Saudi Arabia has a distinct advantage in the oil industry since it can create it in just one hour.

Learn more about comparative advantage from

brainly.com/question/7045530
#SPJ1

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