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Modern international trade is based on the prin... - WAEC Economics 2017 Question

Modern international trade is based on the principle of?

A
absolute cost advantage
B
comparative advantage
C
terms of trade
D
balance of trade
correct option: b

Comparative advantage is an economic term that refers to an economy's ability to produce goods and services at a lower opportunity cost than that of trade partners. A comparative advantage gives a company the ability to sell goods and services at a lower price than its competitors and realize stronger sales margins.

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