When two countries specialize and trade:

Question

Quizplus · Accepted Answer

When two countries specialize and trade, both can enjoy more output than either could produce on its own, they can have consumption possibilities beyond their production possibilities, and surplus can be gained by both countries. In other words, specialization and trade lead to increased efficiency and productivity, allowing countries to produce more of what they are good at and trade for goods they cannot produce efficiently. This leads to a mutual benefit for both countries.

When Two Countries Specialize and Trade