China-U.S. Relationships in the Global Economy

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China-U.S. Relationships in the Global Economy

Introduction

Comparative advantage refers to a major concept of economics which states that a country should specialize and have expertise in exporting and producing goods and services that are produced efficiently, with a low opportunity cost. There are many important factors that enable a country in having comparative advantage for example power resources, land, capital, labor, and technology etc. It also allows the country to enjoy the benefits of free trade, as each country can gain numerous benefits due to its comparative advantage. On the other hand ...