For any pair of nations and goods, if each country has an absolute advantage in the production of one product, it is reasonable to expect that specialization and trade will benefit both countries.

Question

Quizplus · Accepted Answer

When each country specializes in the production of the good in which it has an absolute advantage and then trades with the other, both countries can end up with more of both goods than they would have been able to produce on their own, thus benefiting from the trade.

For Any Pair of Nations and Goods, If Each Country