According to absolute advantage theory, by specializing and trading, each nation produces more and consumes more.

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Absolute advantage theory suggests that nations should specialize in producing goods that they are most efficient at producing, and then trade with other nations in order to obtain goods that they cannot produce as efficiently. This results in increased productivity and consumption for each nation involved in the trade. According to the absolute advantage theory, if each nation specializes in producing the goods and services in which it has an absolute advantage and trades with other nations, then the production and consumption of both nations can increase. This is because each nation can produce more of the goods and services for which it has a productivity advantage, leading to an increase in overall output for both nations.

According to Absolute Advantage Theory, by Specializing and Trading, Each