Trade is only beneficial if a nation has an absolute advantage in producing all products.

Question

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Trade can be beneficial even if a nation does not have an absolute advantage in producing all products. Comparative advantage, which is the ability to produce a good or service at a lower opportunity cost than another producer, is the basis for mutually beneficial trade. Even if a country has an absolute disadvantage in producing a particular product, it may still have a comparative advantage in producing it and therefore should focus on specializing in that product and trading with other countries.

Trade Is Only Beneficial If a Nation Has an Absolute