A contemporary example: China’s comparative advantage with the United States is in the form of cheap labor. Chinese workers produce simple consumer goods at a much lower opportunity cost.

Absolute vs. Comparative Advantage: ... For example, Japan and Italy both produce automobiles. If Italy can manufacture higher quality sports cars and make a greater profit than the competition, ...

One common oversimplification is that comparative advantage is just about countries making what they’re best at. This is a bit like saying Macbeth is a play about murder – yes, but there’s ...