If Country A has an absolute advantage over Country B in the production of every commodity,

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Quizplus · Accepted Answer

Even if one country has an absolute advantage in the production of all commodities, both countries can still benefit from trade. This is because they can specialize in producing the goods and services they are relatively more efficient at producing, and then exchange these with the other country. By doing so, both countries can achieve a higher level of output and consumption than they would be able to achieve alone. Therefore, mutual gains from trade between Country A and Country B would still be possible.

If Country a Has an Absolute Advantage Over Country B