Consider trade between country A and country B.If country A has wages that are substantially less than those in country B,

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The pattern of comparative advantage will depend on the relative productivities of labor in the two countries, meaning that even if country A has lower wages, they may still not have an absolute advantage in all industries. Country B may have higher productivity levels in certain industries, making it more advantageous for them to specialize in those industries and trade with country A. Tariffs and subsidies may come into play depending on the trade agreements and policies of the two countries, but they are not necessary outcomes simply based on wage differences.

Consider Trade Between Country a and Country B