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Explain the benefits of free trade as suggested by the principle of comparative advantage

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Solution 1

The principle of comparative advantage suggests several benefits of free trade:

  1. Increased Efficiency: Countries specialize in producing goods and services where they have a comparative advantage. This leads to an increase in overall world production efficiency.

  2. Greater Variety of Goods and S Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.

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