In a two-good,two country world,if one country has a comparative advantage in the production of one good,it can benefit by trading with the other country.

Question

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According to the principle of comparative advantage, if one country has a lower opportunity cost of producing a particular good than another country, it can benefit by specializing in producing and exporting that good, while importing the other good from the country that has a comparative advantage in its production. This leads to mutual gains from trade and increased efficiency in the use of resources. Therefore, a two-country world with different comparative advantages can benefit from trade.

In a Two-Good,two Country World,if One Country Has a Comparative