If Taiwanese workers can produce all goods at lower wages than American workers, then

Question

Quizplus · Accepted Answer

Even if Taiwanese workers can produce all goods at lower wages than American workers, Americans can still benefit by trading with Taiwan because the price of goods will be lower for American consumers. American producers may face competition, but they can also specialize in producing goods in which they have a comparative advantage and trade with Taiwan. Both countries can benefit from the gains of trade.

If Taiwanese Workers Can Produce All Goods at Lower Wages