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# Agricultural Comparative Advantage

## Definition

The relative efficiency with which different regions can produce various agricultural products, determined by natural conditions, accumulated knowledge, and existing capital investments. Agricultural comparative advantage guides the international division of labor in farming.

## Source Chapter

Book I, Chapter 11

## Context

Smith discusses how different regions have natural advantages for producing different agricultural products, and how market forces guide the specialization of agricultural production to maximize overall efficiency.

## Economic Domain

Production

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