Gains from trade are not dependent upon having an absolute cost advantage in a particular industry.

Question

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Gains from trade can still exist even if one country does not have an absolute cost advantage in a particular industry. This is because each country has a comparative advantage in producing certain goods, meaning they can produce those goods at a lower opportunity cost than other goods. By trading with another country, each can specialize in producing the goods in which they have a comparative advantage, and both can benefit from the increased efficiency and productivity.

Gains from Trade Are Not Dependent Upon Having an Absolute