Theory of comparative advantage

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In international economics, the foundation of free trade is based on the theory of comparative advantage. For example, (an unrealistic and simple one) China produces jeans and US produces computers. But in reality, does this limit the probabilities for countries like China to produce computers? So, in this way, does this mean that developing countries shall never produce in high-tech industries? Is this morally-right?

Reference no: EM132058905

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