If two nations of approximately the same size and with similar taste patterns participate in international trade, the gains from trade tend to be shared about equally between them.

Question

Quizplus · Accepted Answer

According to the law of comparative advantage, when two countries specialize in producing the goods that they can produce at a lower opportunity cost and trade with each other, both countries can benefit and gain from the trade. Therefore, the gains from trade are likely to be shared about equally between them.

If Two Nations of Approximately the Same Size and with Similar