The gains from comparative advantage cannot be realized without trade.

Question

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Comparative advantage refers to the ability of a country or firm to produce a particular good or service at a lower opportunity cost than others. However, in order to benefit from this advantage, trade is necessary. Without trade, countries would be limited to producing only what they can efficiently produce on their own, missing out on gains from specialization and exchange. Therefore, the gains from comparative advantage cannot be realized without trade.

The Gains from Comparative Advantage Cannot Be Realized Without Trade