What Is Specialization in Economics? Definition and Examples
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4. Specialization and tradeWhen a country has a comparative advantage in the production of a good, it means that it can produce this good at a lower opportunity cost than itstrading partner. Then the country will specialize in the production of this good and trade it for other goods.The following graphs show the production possibilities frontiers (PPFs) for Shenandoah and Rainier. Both countries produce peas and lentils, eachinitially (i.e., before specialization and trade) producing 18 million
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