Comparative advantage and the gains from trade

Comparative advantage is the ability to produce something at a lower opportunity cost than another economic agent. When economies specialize based on comparative advantage and trade, they can both benefit. Explore the concepts of comparative advantage, absolute advantage, and specialization.

Comparative advantage, specialization, and gains from trade

Comparative advantage and absolute advantage

Opportunity cost and comparative advantage using an output table

Terms of trade and the gains from trade

Input approach to determining comparative advantage

When there aren't gains from trade

Comparative advantage worked example

Comparative advantage and the gains from trade