In general, for any two countries, there are many exchange rates that will lead to gains from trade, based on comparative advantage.

Question

Quizplus · Accepted Answer

Comparative advantage suggests that countries can benefit from trade by specializing in the production of goods for which they have a lower opportunity cost, and trading for goods where other countries have a comparative advantage. This principle does not rely on a single exchange rate; rather, a range of exchange rates can facilitate trade that is mutually beneficial, as long as the relative prices allow countries to exploit their comparative advantages.

In General, for Any Two Countries, There Are Many Exchange