As long as there are differences in opportunity costs, there will be:

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The concept of comparative advantage is rooted in the differences in opportunity costs among individuals, businesses, or countries. When these differences exist, it allows for the possibility of mutually beneficial trade. Comparative advantage means that an entity can produce a good or service at a lower opportunity cost compared to others. This leads to specialization and trade, as each party focuses on producing what they can create most efficiently.

When entities specialize based on their comparative advantages, they can trade their outputs, resulting in increased overall efficiency and enhanced production. This is why the presence of differing opportunity costs fosters comparative advantages, as it creates the conditions necessary for trade that benefits all involved parties. Thus, the statement accurately reflects the fundamental principle of international trade and economics, highlighting the benefits stemming from specialization and trade between parties with different opportunity costs.

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