What is Comparative advantage?
The ability of a country (or a person or company) to produce a product with less sacrifice (opportunity cost) than others. Britannica notes that this theory was developed in the 19th century by the British economist David Ricardo: if countries specialise in what they do relatively better and buy the rest, both sides gain from trade. Key conclusion: even if one country produces everything more efficiently than another (absolute advantage), trade can still be beneficial.