According to comparative advantage theory, trade is still beneficial even if one country is less efficient in the production of two goods, as long as it is less inefficient in the production of one of the goods.

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According to comparative advantage theory, a country should specialize in producing and exporting goods that it can produce relatively more efficiently or with a lower opportunity cost than other countries, and import goods that other countries can produce relatively more efficiently. This means that even if a country is less efficient in the production of both goods, it can still benefit from trade if it is less inefficient in the production of one of the goods. By specializing in the production of the relatively more efficient good and trading with other countries, the country can increase its consumption of both goods beyond what it could produce domestically, leading to overall gains from trade.

According to Comparative Advantage Theory, Trade Is Still Beneficial Even