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paige vanderford
on Oct 11, 2024

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When there is no comparative advantage between countries

A) the benefits resulting from trade are increased.
B) there are no gains from specialization and trade.
C) there must be an absolute advantage.
D) each should try and specialize in the production of a particular commodity.

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity.

Absolute Advantage

The ability of a country, individual, or firm to produce more of a good or service with the same amount of resources compared to others.

  • Master the concepts of absolute and comparative advantage and how they function within international trade scenarios.
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ZJ
Zhuoying JiangOct 16, 2024
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