Problem 25

Introduction

Comparative advantage is the efficiency of a country to manufacture a specific product at the lowest cost than it’s any other country it is trading with. It is in short an ability of a nation to sell or produce products at a lower price than that of its trade competitors.

Intra-industry trade can be defined as a global trade of goods or products within the same industry. For example, if an automobile industry of the U.S. is trading, importing, and exporting its product with the same industry but in a different country.