can any1 explain it in depth?
Comparative advantage in the context of international trade means that a country should focus on producing in which it has greater relative efficiency or lowest opportunity cost than the country it is trading with. Then the trade is going to be mutually beneficial. If you know the assumptions of this principle of comparative advantage then above written is quite easy to understand.
comparative advantage is gained by the country who gives up the least amount of products to make another.
Business A can make 2 tvs or 6 dvd players
Business B can make 5 tvs or 30 dvd players
So business A's oppurtunity cost ratio is 1:3 thats 1 tv for every 3 dvd players
Business B's oppurtunity coast ratio is 1:6
Therefore business A has the comparative advantage.
Hope that helped!
basically business or country produce what they can produce at most efficient way
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