If a country has few resources

Question

Quizplus · Accepted Answer

Even if a country has few resources, it may still have a comparative advantage in producing a certain good or service. This means that the country can still benefit from trade by exporting what it specializes in and importing what it lacks. Trade can increase the country's GDP despite its limited resources. Specialization is not useless, as it allows the country to maximize its potential in producing the good or service in which it has a comparative advantage.

If a Country Has Few Resources