If one country can produce all goods more cheaply than another, there is no reason to trade.

Question

Quizplus · Accepted Answer

Even if one country can produce all goods more cheaply than another, there are still benefits to trading. Both countries can specialize in producing the goods they are relatively more efficient at producing and then trade with each other to increase efficiency and overall output. This can lead to increased economic growth and higher standards of living for both countries.

If One Country Can Produce All Goods More Cheaply Than