The law of comparative advantage states that a country should specialize in the production of…

The law of comparative advantage states that a country should specialize in the production of a commodity
  • A.
    for which local demand is greatest
  • B.
    in which its oportunity cost is lower than that of the trade partner
  • C.
    for which foreign demand is greatest
  • D.
    for which there is abundant supply of raw materials
Correct Answer: Option B
Explanation
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