Understanding Comparative Advantage in International Trade

International trade refers to the exchange of goods and services between countries. It plays a vital role in the global economy by allowing nations to specialize in what they produce best. This specialization can enhance efficiency and increase overall wealth. One key principle in international trade is the concept of comparative advantage, which suggests that countries should produce and export goods in which they have a lower opportunity cost.

Which of the following statements best describes the concept of comparative advantage in international trade?