The _________________ argument says that two countries cannot engage in trade if one country has a(an) ___________________ over the other country.Note: the phrase will fit in both blanks.
A)absolute advantage
B)regional advantage
C)supply chain advantage
D)comparative advantage
E)global advantage

Question

Quizplus · Accepted Answer

The absolute advantage argument suggests that if one country can produce goods more efficiently (in terms of cost, resources, and time) than another country, then there should be no trade between them. This is because the more efficient country can produce all goods more effectively, leaving no room for beneficial trade based on efficiency differences. However, this view is simplistic and overlooks the benefits of comparative advantage, where countries can still benefit from trade by specializing in goods for which they have a lower opportunity cost.

The _________________ Argument Says That Two Countries Cannot Engage in Trade