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In the real world, we don't observe countries completely specializing in the production of goods for which they have a comparative advantage. One reasons for
In the real world, we don't observe countries completely specializing in the production of goods for which they have a comparative advantage. One reasons for this is O because some countries also have an absolute advantage in the production of those goods. O production of most goods involves increasing opportunity costs. comparative advantage works better in theory than in practice. tastes for many traded goods are similar in many countries because of globalization
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