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Comparative Advantage: An Introduction

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My most recent column for AIER is the first in a two-part series that I’m writing on the principle of comparative advantage [2]. A slice:

Stated abstractly, the core insight conveyed by a correct understanding of the principle of comparative advantage is this: an economic entity’s technical ability to produce some particular product is, by itself, irrelevant for determining if that entity should produce that product itself or, instead, acquire that product by first producing something else and then trading that something else for the product.

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