Two people can benefit from trade if they both live in the same country, but not if they live in different countries.

Question

Quizplus · Accepted Answer

Two people can still benefit from trade even if they live in different countries as long as they have different comparative advantages and can specialize in producing and exporting goods and services that are in high demand in the other country, and import goods and services that are cheaper or not available in their own country. This is the basis of international trade and globalization.

Two People Can Benefit from Trade If They Both Live