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Read the article titled "Comparative Advantage." Explain what comparative advantage is and how it relates to opportunity cost. How do these principles explain why Americans have exported customer service operations to India?
A similar advantage happens when a country has different changes in production that target different products. For example, when viewing America and India’s production services, both countries can produce tools for customer services and accuracy. But America is ahead when talking about technology and the flow of processing the precision tools. This means that the American wants to end making tools to produce customer service it will need to cut its production tools capacity. However India lacks most modern technology.
A comparative advantage happens when a country has irregular shifts in production that target different products. For instance, when considering America and India’s production services, both countries are capable of producing tools for customer services and precision.
But America is ahead in terms of technology and flow of processing the precision tools. This, therefore, implies that the American wants to stop the production of tools to produce customer service it will need to sacrifice its production tools capacity. However, if India lacks the modern technology, it will relinquish its tolls and use them for customer service.
