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WebA nation's comparative advantage in the production of an item is determined by: the opportunity cost of producing the item relative to a trading partner's opportunity cost. The country with a comparative advantage in the production of good X is the one that: can produce good X at the lowest opportunity cost. Webhas a comparative advantage, i.e., in production processes with lower opportunity costs prior to trade than the other country (e.g., Dixit and Norman 1980). Each … WebFeb 1, 1990 · They study the role that the external trading environment and that trade and industrial policies play in the determination of long-run … how to obtain a new log book