According to the theory of comparative advantage, if the U.S. and Mexico increase their trade with each other, the two countries will experience ________ standards of living.

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According to the theory of comparative advantage, when two countries specialize in producing the goods that they are relatively better at producing and trade with each other, both countries experience higher standards of living. This is because they can produce the goods more efficiently and at a lower cost, which results in increased productivity, higher output, and lower prices of goods for consumers. Therefore, if the U.S. and Mexico increase their trade with each other, both countries are likely to benefit and experience higher standards of living.

According to the Theory of Comparative Advantage, If the U