Factories in Country A can produce the same number of tablets as factories in Country B, or the factories in Country A could be used to build more laptops than the factories in Country B is an example of comparative advantage in an international market.
Explanation:
The comparative advantage of manufacturing a good or service is smaller than that of other nations. Opportunity cost compensation measures.
A country with a comparative advantage pays off. The benefits of buying are higher than the drawbacks.
Perhaps the nation isn't the best producer. But for other countries, good or service costs are low.
For Example, Call centers in India. U.S. businesses buy the service because the location of the call center in America is cheaper. Call centers in India are no different than U.S. call centers. Their employees don't always talk very clearly in English. Nonetheless, they offer the service inexpensive enough to make the deal worthwhile.
