A nation can gain from international trade when the relative domestic prices of the nation differ from that in other countries and it imports goods for which it is a high opportunity cost producer.

Question

Quizplus · Accepted Answer

This statement is describing the principle of comparative advantage, which states that a nation can benefit from trading with other nations when it can specialize in producing goods for which it has a lower opportunity cost, and import goods for which it has a higher opportunity cost. This allows for a more efficient use of resources and can result in increased economic growth and welfare for all parties involved.

A Nation Can Gain from International Trade When the Relative