Answer to Question #282577 in Economics for Hafsa

Question

What is the exception to the law of comparative advantage? How prevalent is it?

Answer 1

The law of comparative advantage was developed by David Ricardo in 1817 to explain the reason behind international trade between countries even when one country's businesses, factories, and workers are more efficient at producing every single good than the other country.

The exception is when there is no comparative advantage to any nation their is no scope for beneficial trade between them.