If Finland has an absolute advantage in the production of two goods compared to Latvia,Finland can still benefit from trade with Latvia.

Question

Quizplus · Accepted Answer

Even if Finland has an absolute advantage in the production of two goods compared to Latvia, there may still be other goods that Latvia can produce more efficiently or at a lower opportunity cost. By trading with each other, both countries can benefit from obtaining goods that they cannot produce as efficiently themselves. Additionally, trade can increase competition and drive innovation and efficiency in both economies.

If Finland Has an Absolute Advantage in the Production of Two