Ricardo's law of comparative advantage

Ricardo’s law of comparative advantage explains that countries or individuals benefit from specializing in producing goods or services where they are relatively more efficient, even if one is absolutely better at producing everything. By focusing on their most efficient areas and trading with others, all parties can enjoy more goods and services than if they tried to produce everything on their own. This concept promotes trading based on comparative efficiency, leading to more optimal resource use and increased overall economic welfare for everyone involved.