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Comparative Advantage happens when one country has the ability to produce goods or services with a lower opportunity cost over another. Assuming all countries produce according to their comparative advantage and then trade with one another, this should increase total world output since it would minimise the cost from producing goods they are less efficient in. The sources of comparative advantage can be ranged from demographics and natural resources of a country to their existing technology and infrastructures. For example, Russia is rich in oil reserves so they can provide cheaper oil products.
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