Countries specialize in producing goods where they have a comparative advantage to increase overall production and consumption.
A country may choose to specialize in producing a particular good when it has a comparative advantage in producing that good, meaning it can produce it at a lower opportunity cost than other countries.
Specialization occurs based on the concept that if each country focuses on producing goods where they have a comparative advantage, and then trades those goods with others, overall global production increases.
For example, if Country A can produce cars more efficiently than Country B while Country B is better at producing computers, both countries can specialize and trade, leading to higher production levels and increased consumption for both.
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