Large gains from trade are most likely when countries are very different.

Question

Quizplus · Accepted Answer

When countries are very different in terms of their resources, technologies, and preferences, there is greater potential for gains from trade as each country can specialize in producing goods or services in which they have a comparative advantage and trade with each other. This allows both countries to increase their overall production and consumption possibilities.

Large Gains from Trade Are Most Likely When Countries Are