A nation benefits from international trade if it can achieve a higher indifference curve than it can in autarky.

Question

Quizplus · Accepted Answer

By engaging in international trade, a nation can consume goods from other countries that it cannot produce domestically or can produce at a higher cost. This allows the nation to move to a higher indifference curve, meaning it can achieve a higher level of satisfaction or well-being.

A Nation Benefits from International Trade If It Can Achieve