What is a primary focus of comparative advantage theory?

The primary focus of comparative advantage theory is indeed on the specialization of producing goods at a more efficient cost. This economic principle posits that nations can benefit from trade by specializing in producing goods for which they have a lower opportunity cost compared to others. By focusing on their comparative advantages, countries can trade to obtain goods that they do not produce as efficiently, resulting in an overall increase in economic welfare and productivity.

This specialization allows for greater efficiency in production, as countries allocate their resources toward the areas where they are most efficient. Consequently, this can lead to lower prices for consumers and improved resource allocation on a global scale. This approach to trade emphasizes coordination and economic interdependence rather than self-sufficiency or competition without trade, highlighting the value of international collaboration.