According to the principle of comparative advantage,if the United States trades with Mexico,most likely,
A) the United States will benefit and Mexico will lose.
B) the United States will lose and Mexico will benefit.
C) neither of the countries will benefit.
D) both countries will benefit.

Question

Quizplus · Accepted Answer

According to the principle of comparative advantage, each country should specialize in producing the goods that they can produce more efficiently than their trading partners, and trade with each other to achieve mutual gains from trade. Therefore, both countries will benefit as they will be able to produce and consume more goods by trading with each other.

According to the Principle of Comparative Advantage,if the United States