Nikoli lives in New Salom which specializes in component parts, while its geographical neighbor, Durma specializes in heavy machinery. New Salom exports component parts to Durma, which in turn exports heavy machinery to New Salom. According to the theory of comparative advantage, this mutually beneficial trade relationship best illustrates
a positive-sum game.
a first-mover advantage.
the advantages of mercantilism.
the significance of trade barriers.
a zero-sum game.
