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    Comparative Advantage

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    Why can't one country have a comparative advantage over another country in the production of everything if the first country has excellent natural resources, a huge capital stock, a highly skilled labour force, and ingenious technicians and managers, while the second country is poor in all four areas?

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    One country can't have a comparative advantage over another country in producing everything even though it is rich on all categories. The country can have an "absolute" advantage in all products/services but not comparative advantage. This is because the country should specialize in goods that it can manufacture ...

    Solution Summary

    The solution goes into a great amount of detail related to the comparative advantage question being asked. The solution is very easy to follow along and can be easily understood by anyone with a basic understanding of the concepts. The solution answers all the question(s) being asked in a succinct way. Overall, an excellent response.