According to the principle of absolute advantage, international trade is beneficial to the world if one nation has an absolute cost advantage in the production of one good while the other nation has an absolute cost advantage in the other good.

Question

Quizplus · Accepted Answer

The principle of absolute advantage suggests that if each country specializes in the production of goods for which it has an absolute cost advantage and then trades with others, overall world production and consumption can increase, benefiting all countries involved.

According to the Principle of Absolute Advantage, International Trade Is