Two individuals or two nations can benefit from trade even if one country has an absolute advantage over the other in producing all goods.

Question

Quizplus · Accepted Answer

This is because even if one country has an absolute advantage in producing all goods, they may still benefit from trading with another country in terms of specialization, increased efficiency, and access to a greater variety of goods. This is known as comparative advantage.

Two Individuals or Two Nations Can Benefit from Trade Even