The source of gains from trade is

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Comparative advantage refers to a situation where a country or an individual can produce a particular good or service at a lower opportunity cost than another. When such countries or individuals specialize in producing the good or service in which they have a comparative advantage and trade with each other, they will both benefit from the exchange. This is because each country is able to obtain more of the goods and services it desires at a lower opportunity cost than it would have done without trade. Therefore, the source of gains from trade is comparative advantage.

The Source of Gains from Trade Is