If America can produce industrial goods AND agricultural goods more cheaply than Australia, is there any...

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If America can produce industrial goods AND agricultural goods more cheaply than Australia, is there any reason for the US to trade with Australia? a. America can still gain by specializing in what it has the most advantage in producing, and then trading. Ob. No, the reality is that no country can truly gain by trading with countries less productive than they are. Oc. Trade makes economic sense when comparative advantage exists, but not in cases of absolute advantage. C. d. Trade only leads to trade wars, so it is an over-rated concept. If America can produce industrial goods AND agricultural goods more cheaply than Australia, is there any reason for the US to trade with Australia? a. America can still gain by specializing in what it has the most advantage in producing, and then trading. Ob. No, the reality is that no country can truly gain by trading with countries less productive than they are. Oc. Trade makes economic sense when comparative advantage exists, but not in cases of absolute advantage. C. d. Trade only leads to trade wars, so it is an over-rated concept.

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The detailed answer for the above question is provided below The correct response is c Trade makes economic sense when comparative advantage exists bu... View the full answer