Comparative advantage is a dynamic concept meaning that it changes over time.
What are the Main Sources of Comparative Advantage?
For a country, some of the factors below are important in determining the relative unit costs of production:
Comparative advantage is often a self-reinforcing process
Comparative advantage is regarded by some economists as an unrealistic concept. This may negate the ability of a nation to exploit it: the realism can be challenged by considering factors such as imperfect factor mobility within an economy; protectionism; transport costs, non–homogenous products; imperfect information among producers and consumers.
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