Discuss how Ricardo’s theory of comparative advantage supports the ideas of globalization and free trade

Please provide the best answer for the statement.


Answer: Comparative advantage is part of the most significant economic arguments for globalization and free trade. According to Ricardo, globalization is good because specialization and free trade boost total economic output, and everyone can share in the increased output.
Ricardo showed that free trade creates prosperity for everyone. If a country specializes in making and exporting goods where opportunity costs are lower than opportunity costs to other nations, the first nation will have comparative advantage.

Philosophy & Belief

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