The ________ states that it can be beneficial for two countries to trade without barriers as long as one is relatively more efficient at producing goods or services needed by the other.

Question

Quizplus · Accepted Answer

The statement describes the comparative advantage principle, which argues that countries should specialize in producing goods or services that they can produce more efficiently than others, and then trade with other countries to obtain goods or services in which they are not as efficient. This principle suggests that free trade with other countries benefits all parties involved, as it allows for the most efficient allocation of resources and production.

The ________ States That It Can Be Beneficial for Two