If a country has absolute advantage in the production of all goods, then it will have no incentive to trade.

Question

Quizplus · Accepted Answer

Even if a country has an absolute advantage in the production of all goods, it can still benefit from trade by specializing in the production of the goods in which it has the greatest advantage and exchanging them for goods produced by other countries at a lower cost. This can lead to increased efficiency, lower prices, and greater consumer surplus.

If a Country Has Absolute Advantage in the Production of All