The _________________ argument says that two countries cannot engage in trade if one country has a(an) ___________________ over the other country. Note: the phrase
Will fit in both blanks.
A) absolute advantage
B) regional advantage
C) supply chain advantage
D) comparative advantage
E) global advantage

Question

Quizplus · Accepted Answer

The absolute advantage argument suggests that if one country can produce a good more efficiently than another, it might seem like they cannot engage in trade. However, this is a misconception, as trade can still be beneficial if they specialize based on comparative advantage.

The _________________ Argument Says That Two Countries Cannot Engage in Trade