What does US comparative advantage?

Answer 1

U.S. comparative advantage refers to the ability of the United States to produce certain goods and services at a lower opportunity cost than other countries. This concept is rooted in the idea that nations should specialize in producing what they are relatively more efficient at, leading to increased overall economic efficiency. For the U.S., sectors like technology, finance, and agriculture often showcase this advantage, allowing for enhanced trade benefits globally. By focusing on these strengths, the U.S. can optimize resources and improve its economic output.