Hi. Could you help me with this please?

A short summary of the article and an opinion and application on this article to your life in a few sentences.

"Comperative Advantage Theory and Examples"

Comparative advantage is when a country produces a good or servicefor a lower opportunity cost than other countries. Opportunity cost measures a trade-off. A nation with a comparative advantage makes the trade-off worth it. Thebenefits of buying its good or service outweigh the disadvantages. The country may not be the best at producing something. But the good or service has a low opportunity cost for other countries to import.1

For example, oil-producing nations have a comparative advantage inchemicals. Their locally-producedoil provides a cheap source of material for the chemicals when compared to countries without it.A lot of the raw ingredients are produced in the oil distillery process.As a result, Saudi Arabia, Kuwait, and Mexicoare competitivewithU.S. chemical productionfirms. Theirchemicals are inexpensive, making their opportunity cost low.

Theory of Comparative Advantage

Eighteenth-century economist David Ricardo created the theory of comparative advantage. He argued that a country boosts its economic growth the most by focusing on the industry in which it has the most substantial comparative advantage.5

For example, England was able tomanufacture cheap cloth. Portugal had the right conditions to make cheap wine. Ricardo predicted that England would stop making wine and Portugal stop making cloth. He was right. England made more money by trading its cloth for Portugal'swine, and vice versa. It would have cost England a lot to make all the wine it needed because it lacked the climate. Portugal didn't have the manufacturing ability to make cheap cloth. So, they both benefited by trading what they produced the most efficiently.

How It Works

One factor in America's comparative advantages is its vast landmassbordered by two oceans. It also has lots of fresh water, arable land, and available oil. U.S. businesses benefit from cheap natural resourcesandprotection from a land invasion.

Most important, it has a diverse population with a common language and national laws. The diverse population provides an extensive test market for new products. It helped theUnited States excel in producing consumer products.

Diversity also helped the United States became a global leader in banking, aerospace, defense equipment, and technology.Silicon Valleyharnessed the power of diversity to become a leader in innovative thinking. Those combined advantages created thepower of the U.S. economy.9