Comparative advantage is an economic principle that explains how individuals or countries can benefit from specializing in the production of goods or services they can produce more efficiently than others. For example, if Country A is better at making cars while Country B excels in producing textiles, both can trade to enjoy more of both products than if they tried to produce everything themselves.
This concept encourages trade and cooperation, as it allows each party to focus on what they do best. By leveraging their unique strengths, Country A and Country B can maximize their overall output and improve their economic well-being.