If the United States has absolute advantages in producing wheat and automobiles, it should never trade with other countries that produce wheat and automobiles.

Question

Quizplus · Accepted Answer

Even if a country has absolute advantages in producing certain goods, it can still benefit from trade with other countries that also produce those goods. This is because trade allows for specialization and economies of scale, leading to increased efficiency and lower costs for all parties involved. Additionally, trading allows countries to access a wider variety of goods and services than they could produce on their own.

If the United States Has Absolute Advantages in Producing Wheat