How does opportunity cost determine comparative advantage?

Opportunity cost is the value of the next best alternative foregone when making a decision. In determining comparative advantage, it helps identify which option produces a good or service at a lower opportunity cost than others. A party has a comparative advantage in producing a good if it sacrifices less in terms of other goods compared to others, thereby guiding efficient resource allocation and specialization in trade. This leads to increased overall production and mutual benefits for trading parties.