Comparative Advantage: Comparative advantage refers to an individual's ability to produce a good or service at a lower opportunity cost compared to others. It is the basis for specialization and trade between countries.
Division of Labor: Division of labor involves breaking down complex tasks into smaller ones and assigning them to different individuals or groups based on their skills or expertise.
Trade: Trade is the exchange of goods and services between individuals, businesses, or countries. Specialization often leads to trade as each party focuses on producing what they are most efficient at.