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emmainna [20.7K]
3 years ago
15

Identify the three components of COMPARATIVE ADVANTAGE according to Riccardo: ​

Social Studies
1 answer:
Drupady [299]3 years ago
4 0

Answer:

Comparative advantage, economic theory, first developed by 19th-century British economist David Ricardo, that attributed the cause and benefits of international trade to the differences in the relative opportunity costs (costs in terms of other goods given up) of producing the same commodities among countries.

Comparative advantage is an economy's ability to produce a particular good or service at a lower opportunity cost than its trading partners. The theory of comparative advantage introduces opportunity cost as a factor for analysis in choosing between different options for production.

Explanation:

Hope this help you out

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