According to the theory of comparative advantage,if the U.S.and Mexico increase their trade with each other,the two countries will experience ________ standards of living.

Question

Quizplus · Accepted Answer

According to the theory of comparative advantage, if countries specialize in producing goods and services in which they have a lower opportunity cost and trade with each other, both countries will experience a higher standard of living. Therefore, if the U.S. and Mexico increase their trade with each other, their standards of living will likely increase.

According to the Theory of Comparative Advantage,if the U