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The idea that each country should specialise where it is relatively most efficient is the principle of:

ACombined advantage
BComparative advantage
CCompetitive allowance
DCollective allowance
Answer & Solution
Correct answer: B. Comparative advantage
1. Specialisation raises total output. 2. Trade then makes both sides better off. 3. It is comparative advantage. _Source: OpenStax Introduction to Business, Chapter 3, Competing in the Global Marketplace._
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