Countries that are unable to produce goods as efficiently as other countries will never be able to trade.

Question

Quizplus · Accepted Answer

Countries can still benefit from trade even if they are not as efficient in producing goods as other countries. They can specialize in producing goods that they can produce relatively more efficiently than others, and then trade these goods for goods that other countries produce more efficiently. This allows both countries to benefit from the trade.

Countries That Are Unable to Produce Goods as Efficiently as Other