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SVEN [57.7K]
3 years ago
13

Trade between two nations is mutually beneficial if each specializes in the good in which it has a comparative advantage?

Social Studies
1 answer:
Amiraneli [1.4K]3 years ago
8 0

<u>Answer:</u>

The trade between two nations is mutually beneficial if each specializes in the good in which it has a comparative advantage is a TRUE statement.

<u>Explanation:</u>

  • If a raw material that is needed for the production of a specific commodity is available in abundance within the domestic boundaries of a country, the production of that particular commodity becomes way more economical for the country more than any other country.
  • Trading in such a commodity with another countries, gives the producing country a competitive advantage as it fetches more profit through the trade of such commodities.
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