To benefit from trade, a country must have the absolute advantage in producing its traded good.

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Quizplus · Accepted Answer

A country does not necessarily need to have absolute advantage in producing its traded good to benefit from trade. It can still gain from trade even if it has comparative advantage, which means it can produce its traded good at a lower opportunity cost than other countries. By specializing in producing and exporting the goods in which it has comparative advantage, a country can increase its total output and trade with other nations to obtain goods in which other countries have comparative advantage. This leads to gains from trade and increased economic efficiency.

To Benefit from Trade, a Country Must Have the Absolute