International trade based on the concept of comparative advantage allows trading partners to be better off than if they did not trade.

Question

Quizplus · Accepted Answer

Comparative advantage allows countries to specialize in producing goods that they can produce more efficiently and trade with other countries to obtain goods that they cannot produce efficiently. This results in an increase in total output and economic welfare, making both countries better off than if they did not trade.

International Trade Based on the Concept of Comparative Advantage Allows