Is comparative advantage exploitational

Answer 1

Comparative advantage itself is not inherently exploitational; rather, it is an economic principle that suggests individuals or countries should specialize in producing goods or services they can produce most efficiently relative to others. However, the practical application of this principle can lead to exploitative situations, particularly when labor and environmental standards are neglected. If a powerful entity takes advantage of weaker parties' resources or labor conditions to maximize profits, it can create exploitative dynamics. Thus, while the concept is neutral, its implementation can raise ethical concerns.