If two countries specialize and trade with each other, there will be no gains from trade when the opportunity costs differ between them.

Name: If two countries specialize and trade with each other, there will be no gains from trade when the opportunity costs differ between them.
Brand: Quizplus
Rating: 4.9 (46 reviews)

Question

Quizplus · Accepted Answer

When two countries have different opportunity costs, they can benefit from trade by specializing in the production of goods for which they have a comparative advantage, leading to gains for both.

If Two Countries Specialize and Trade with Each Other, There