If nations trade on the basis of comparative advantage:
A) a nation usually can gain from trade only at the expense of its trading partners.
B) exporting nations gain from trade and importing nations lose.
C) importing nations gain from trade and exporting nations lose.
D) all trading partners can gain from trade.

Question

Quizplus · Accepted Answer

When nations trade based on comparative advantage, all trading partners can benefit because they can specialize in producing goods where they have a lower opportunity cost, leading to more efficient production and consumption.

If Nations Trade on the Basis of Comparative Advantage