Question

Can a nation’s comparative advantage change over

time? What factors would make it change?

Short answer

Yes, the comparative advantage may change.

Step-by-step solution

Step 2. Definition

The ability to produce a good or service at a relatively opportunity cost than others is known as comaprative advantage.

Step 2. Explanation

Yes, a nation’s comparative advantage changes over time because of various factors. This happens in industries that are not dependent upon climate and natural deposits of minerals and other resources. Technological upgradtion, accumulation of knowledge, chnages in efficiency conditions, etc can cause opportunity costs to change as well. Since, comparative advantages depend on opportunity costs changes in these factors can change comparative advantage as well.