Using cheap of labor to provide raw materials that can be made into finshed goods in an example of which concept?

Using cheap labor to provide raw materials that can be transformed into finished goods exemplifies the concept of comparative advantage. This economic principle suggests that countries or regions should specialize in producing goods for which they have the lowest opportunity cost, allowing them to trade effectively. By leveraging inexpensive labor, firms can reduce production costs and increase competitiveness in the global market. This practice is often seen in industries that rely on outsourcing and global supply chains.