If a country has an absolute advantage in the production of every good, it cannot benefit from trade with other countries.

Question

Quizplus · Accepted Answer

Even if a country has an absolute advantage in the production of every good, it can still benefit from trade with other countries through gains from trade and specialization. By specializing in producing the goods they have the greatest absolute advantage in and trading with other countries for goods they have a lower advantage in, both countries can increase their overall productivity and consumption.

If a Country Has an Absolute Advantage in the Production