Gains from trade will result if a country specializes in:

Question

Quizplus · Accepted Answer

Gains from trade result when a country specializes in producing goods in which it has a comparative advantage. This means that the country can produce those goods at a lower opportunity cost compared to other goods, allowing it to trade with other countries and benefit from the exchange. Specializing in goods in which a country has an absolute advantage may not necessarily result in gains from trade if the opportunity cost of producing those goods is too high.

Gains from Trade Will Result If a Country Specializes In