Question

What does Oman and pakistan have a comparative advantage in?

Answer 1

Pakistan exports mainly consists of handicrafts and clothing as a result of which you can actually understand that people here are more skilled in handicrafts and clothing as a result of which you can understand the opportunity cost of producing any other goods with respect to handicrafts is low and that is the reason why, Pakistan is a country which has a comparative advantage in handicrafts and clothing

The case of Oman is different, Oman has huge reserves of oil as a result of which, Oman is a country where the opportunity cost of producing oil is less because they can produce huge amounts by sacrificing less of other goods because they are actually lacking in resources and therefore oil is the good in which Oman has a comparative advantage in