According to the principle of comparative advantage, if a rich country trades with a poor country, then
A) the rich country will benefit and the poor country will lose.
B) the rich country will lose and the poor country will benefit.
C) both countries will benefit.
D) neither of the countries will benefit.

Question

Quizplus · Accepted Answer

The principle of comparative advantage suggests that when countries engage in trade, each can specialize in producing goods for which they have a lower opportunity cost, leading to mutual benefits for both trading partners, regardless of their initial economic status.

According to the Principle of Comparative Advantage, If a Rich