Consider two countries that can produce rice and other products. If neither country has an absolute advantage in the production of rice,

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Quizplus · Accepted Answer

Just because neither country has an absolute advantage in rice production, it is still possible for one country to have a comparative advantage in rice production. In this case, the country with the lower opportunity cost of producing rice (in terms of the other products it could produce instead) will have a comparative advantage in rice production and will likely specialize in producing rice and trade with the other country.

Consider Two Countries That Can Produce Rice and Other Products