Comparative Advantage: Comparative advantage refers to the ability of a country to produce goods or services at a lower opportunity cost compared to other countries. It is based on differences in resources, skills, technology, or efficiency.
Specialization: Specialization occurs when individuals, businesses, or nations focus on producing certain goods or providing specific services for which they have a comparative advantage. By specializing in what they do best, they can increase efficiency and productivity.
Trade Barriers: Trade barriers are restrictions imposed by governments on the flow of goods and services between countries. These barriers can include tariffs (taxes), quotas (quantity limits), embargoes (complete bans), or regulations that hinder international trade.