Explain how trading between countries makes them better off. Describe the opportunity cost each country gives up
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Question:
- Explain how trading between countries makes them better off.
- Describe the opportunity cost each country gives up by trading with each other.
- Does either country have an absolute advantage in producing their goods?
- How does identifying each country's comparative advantage aid in understanding its benefits in free trade?
Expert Answer:
Trading between countries makes them better off through the principle of comparative advantage which allows each country to specialize in producing th... View the full answer
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