What Are the Limitations of Comparative Advantage?
While comparative advantage provides a useful framework, it has limitations. It assumes that factors such as labor and capital are immobile between countries, which is not always the case in today's globalized world. Additionally, it does not account for the impact of trade barriers, tariffs, and other forms of protectionism. Moreover, the dynamic nature of comparative advantage means that it can shift over time due to changes in technology, resources, and other economic conditions.