Maximization of total output: Specialization maximizes the total output. By concentrating on the production of goods in which a party has a comparative advantage, it can produce more goods than if they had attempted to produce everything by themselves.
Lowered opportunity cost: By specializing and trading, the parties will be able to lower the opportunity cost of producing goods. This results in better resource utilization.
It enables access to more varied goods and, thereby improves consumers' choice and their level of living standards. Growth in and development of economics can also be achieved due to the principle of comparative advantage; because this principle supports countries that promote efficiency and innovations of certain industries for better results in which a nation compares them with the best they have.
• Both countries have the same opportunity costs, but the decision comes down to specialization based on the good they can produce more efficiently relative to the other.
• Country A has a comparative advantage in producing wheat because it has to give up less wine to produce wheat compared to Country B.
• Country B is comparative advantageous in wine production because it has to give up fewer tons of wheat to produce wine compared to Country A.
Specialization and Trade:-
 Country A should specialize in the production of wheat and export it as trade for wine from Country B.
 Country B should specialize in wine production and export it as trade for wheat from Country A.
This, both countries end up benefiting with more wheat and wine than they could have produced on their own
Comparative Advantage vs. Absolute Advantage
It is also important to understand how comparative advantage differs from absolute advantage, another very important economic concept.
Absolute Advantage

Maximization of total output: Specialization maximizes the total output. By concentrating on the production of goods in which a party has a comparative advantage, it can produce more goods than if they had attempted to produce everything by themselves.
Lowered opportunity cost: By specializing and trading, the parties will be able to lower the opportunity cost of producing goods. This results in better resource utilization.
It enables access to more varied goods and, thereby improves consumers' choice and their level of living standards. Growth in and development of economics can also be achieved due to the principle of comparative advantage; because this principle supports countries that promote efficiency and innovations of certain industries for better results in which a nation compares them with the best they have.
• Both countries have the same opportunity costs, but the decision comes down to specialization based on the good they can produce more efficiently relative to the other.
• Country A has a comparative advantage in producing wheat because it has to give up less wine to produce wheat compared to Country B.
• Country B is comparative advantageous in wine production because it has to give up fewer tons of wheat to produce wine compared to Country A.
Specialization and Trade:-
 Country A should specialize in the production of wheat and export it as trade for wine from Country B.
 Country B should specialize in wine production and export it as trade for wheat from Country A.
This, both countries end up benefiting with more wheat and wine than they could have produced on their own
Comparative Advantage vs. Absolute Advantage
It is also important to understand how comparative advantage differs from absolute advantage, another very important economic concept.