Productivity grows more quickly when countries produce goods and services in which they are of ________ advantage.

Productivity grows more quickly when countries produce goods and services in which they are of comparative advantage.

Comparative advantage is a key principle in international trade theory, which states that even if one country can produce everything more efficiently than another, there can still be benefits to trade if each country specializes in the production of goods and services for which they have a lower opportunity cost. This means they can produce certain goods more efficiently than others, allowing them to trade surplus production with other countries for goods that they do not produce as efficiently.

By capitalizing on their comparative advantages, countries can increase their overall productivity. Specialization leads to more efficient production processes and innovations, as resources are allocated to areas where they are most effective. This results in not only a higher output but also a more efficient use of available resources, ultimately enhancing economic growth and improving living standards.