What is comparative advantage? Give one example.

What will be an ideal response?

Comparative advantage is the idea that countries should produce and export those goods they can produce at a lower cost than others and import those items that others produce at a lower cost. Students should be able to give one example of comparative advantage. For instance, coffee can be grown at a lower cost in Brazil, while corn can be grown at a lower cost in the United States; therefore, to gain access to coffee the United States can trade corn with Brazil.