What does the theory of comparative advantage illustrate?

Question

Quizplus · Accepted Answer

The theory of comparative advantage illustrates that by specializing in the production of goods and services in which they have a relative efficiency, countries can increase overall consumption and efficiency through trade. This principle suggests that even if one country is more efficient in producing all goods compared to another, both can benefit from trade if they specialize based on their comparative advantages.

What Does the Theory of Comparative Advantage Illustrate