Ricardo's theory of comparative advantage was of limited relevance to the real world since it assumed that labor was only one of several factors of production.

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Ricardo's theory of comparative advantage is highly relevant to the real world despite its simplifying assumption that labor is the only factor of production. The core principle—that countries benefit from specializing in and trading goods for which they have a comparative advantage—applies even when multiple factors of production are considered.

Ricardo's Theory of Comparative Advantage Was of Limited Relevance to the Real