Which of the following statements is true of the gains to trade?

Question

Quizplus · Accepted Answer

The gains to trade typically increase when trading partners are more dissimilar because differences in production capabilities and resources mean that countries can specialize in the production of goods for which they have a comparative advantage, leading to more efficient global production and increased gains from trade. When countries are very similar, there's less scope for such specialization, and thus, the gains from trade are likely to be smaller.

Which of the Following Statements Is True of the Gains