Which of the following statements best illustrates how comparative advantage influences specialization? A.The Brandt Line gives a visual representation of development.B.Developed nations are wealthier as a result of the successful production and trade of manufactured goods.C.Developing nations are poorer due to limited export incomes.D.The Brandt Line theory was developed by an American economist.
When we say comparative advantage, this refers to one country's advantage when they can produce a certain product at a lower opportunity cost. As this influences specialization, this can be illustrated by this:Â Developed nations are wealthier as a result of the successful production and trade of manufactured goods. The answer would be option B.
The correct answer is D, as that statement is false. The Brandt Line theory wasn't developed by an American economist, as it was proposed by the German politician Willy Brandt.
