Specialization in the global economy is restricted by what?

Specialization in the global economy is restricted by tariff. Specialization is a concept in free trade where it states that the world would be better off if countries focus or specialize in producing the goods which they have the least opportunity cost. A country is said to have a comparative advantage if it has less opportunity cost in producing a good over other countries.

In reality, however, countries do not fully utilize specialization because of existing barriers like tariff. Tariffs are restrictions made by countries on imports to make it less attractive to the local consumers and, in a way, to ensure that domestic goods are patronized. Tariffs are restrictions on specialization because it hinders the country in producing the goods that they are most efficient in.