The law of comparative advantage refers to the notion that states that every nation, city or town has a production activity that incurs a lower opportunity cost than other nations, cities or towns. This law has a fundamental advantage to international trade. It also applies to different areas of specialization, for instance, division of labor. One can understand the law of comparative advantage by looking at several things that put one nation, city or town on top of the others. This paper looks at the comparative advantage of the Los Angeles city in the United States of America.
Discussion
The Los Angeles city in the United States of America has many advantages over the other cities. Despite the fact that it may not rank as the largest city, it has some advantages over some large cities in the United States of America. First, Los Angeles provides a landscape that allows people a change of air without having to go out of town. Los Angeles has a mountainous landscape with a rather dry climate. Towards the northeast of Los Angeles, called the valley, one can find Burbank and Glendale areas. The beautiful sceneries that these mountainous views have attract both the internal and external tourists.
Los Angeles has the famous movie industries, television networks and borrows, such as the universal studio, Warner bros and NBC network. The city has beautiful beaches in Santa Monica and Orange County located in south Los Angeles. It also has beautiful parks such as Disneyland and Knott's berry farm. All these provide rich scenery that attracts a lot of revenue to the economic stability of the city. Because of the beautiful scenes, the city has attracted many business entities that would like