The benefits to trading nations based on comparative advantage accrue from

Question

Quizplus · Accepted Answer

The concept of comparative advantage suggests that countries benefit from specializing in the production of goods for which they have a lower opportunity cost and then trading these goods. This specialization and subsequent trade allow all involved parties to enjoy a greater quantity and variety of goods than they would in isolation. Protection of domestic industries is not related to the benefits derived from comparative advantage.

The Benefits to Trading Nations Based on Comparative Advantage Accrue