Trade between two countries can benefit both countries if
A)each country has a more elastic supply for the exported goods.
B)each country produces a wide range of goods for export.
C)each country exports that good in which it has a comparative advantage.
D)each country enjoys superior terms of trade.
E)each country has a more elastic demand for the imported goods.

Question

Quizplus · Accepted Answer

Trade benefits both countries when each exports goods in which it has a comparative advantage, allowing for more efficient production and consumption.

Trade Between Two Countries Can Benefit Both Countries If