Yes, I think people make errors of judgement. I also think the 'path dependency' mentioned in another comment exists. I also think, as another poster mentioned,

Yes, I think people make errors of judgement. I also think the 'path dependency' mentioned in another comment exists. I also think, as another poster mentioned, there are strategic reasons to ensure a balance of industries in your economy. I think the comparative advantage model remains a compelling starting point despite all this. But it doesn't matter what I think, the key thing is that many people who actually do make decisions use the comparative advantage model.