If Russia has a comparative advantage in the production of wheat and China has a comparative advantage in the production of textiles, then
A) neither country has anything to gain from specialization and trade.
B) it is reasonable to expect that specialization will benefit both countries, but trade will not.
C) it is reasonable to expect that specialization and trade will benefit both countries.
D) it is reasonable to expect that trade will benefit both countries, but specialization will not.

Question

Quizplus · Accepted Answer

Specialization and trade allow each country to focus on producing goods for which they have a comparative advantage, leading to increased efficiency and mutual benefits from trade.

If Russia Has a Comparative Advantage in the Production of Wheat