If a country has an absolute advantage in both items produced when compared to another country, there can never be any benefit for them to trade.

Question

Quizplus · Accepted Answer

Even if a country has an absolute advantage in both items produced, there can still be a benefit for them to trade if they have a comparative advantage in one item over the other country. This means that they can produce one item at a lower opportunity cost than the other country, and therefore can trade that item for the other country's item at a mutually beneficial price.

If a Country Has an Absolute Advantage in Both Items