Division of labor and comparative advantage

The law of comparative advantage was first mentioned in 1817 by English economist David Ricardo.

A company has a comparative advantage when it is able to provide a good or service at a lower opportunity cost than others, helping it sell the same product at a lower cost, ...

• Comparative advantage is only an advantage of a lower opportunity cost, and does not factor in volume or quality.
• Absolute advantage is the pure ability of a company to produce better goods or services (in quantity or quality) than...

Governments around the world impose rules, regulations and restrictions like:

1. Tariffs
2. Selective trade agreements.
3. Lobbying and rent-seeking to protect a country's interests.
4. Tax breaks and special deals
5. Sanctions

These practices e...