When countries specialize in producing a particular product and trade products they don't produce, it will generally lead to a worse outcome than if every country produces all the products as best they can.

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Quizplus · Accepted Answer

This statement is not accurate. Specialization and trade can lead to overall economic efficiency, as countries can focus on producing goods in which they have a comparative advantage and then trade for goods they don't produce as efficiently. This concept is known as the principle of comparative advantage, which argues that even if a country is better at producing all goods compared to another country, they can still benefit from specializing in what they excel at and trading for other goods.

When Countries Specialize in Producing a Particular Product and Trade