How can a country benefit from having a comparative advantage?

A country can benefit from having a comparative advantage by focusing on the production of goods where it has the lowest opportunity cost. This principle of comparative advantage suggests that if a country can produce a good more efficiently (or at a lower opportunity cost) than another country, it should specialize in that good. By concentrating its resources on the production of goods where it holds this advantage, a country can increase its overall efficiency and productivity.

When countries specialize in producing goods where they have a comparative advantage, they can then trade with other countries that produce different goods more efficiently. This leads to mutual benefits as countries can enjoy a greater variety of goods at lower prices than if they attempted to produce everything independently. The result is an overall increase in global production and an improvement in the standard of living as resources are allocated more effectively.

The other options suggest strategies that do not capitalize on the benefits of comparative advantage. Limiting exports, imposing tariffs, or seeking to monopolize markets may protect specific domestic industries in the short term but do not promote the broader economic efficiency and gains from trade that arise from specializing according to comparative advantage. These strategies can lead to inefficiencies and higher costs for consumers.