A very productive country can have an absolute advantage in producing all goods over a less productive country, and still gain from trade.

Question

Quizplus · Accepted Answer

Even if a country has an absolute advantage in producing all goods, it can still benefit from trade by specializing in producing those goods in which it has a comparative advantage, and trading with other countries for goods in which they have a comparative advantage. This can lead to increased efficiency, higher output, and lower prices for consumers.

A Very Productive Country Can Have an Absolute Advantage in Producing