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A country that does not have an absolute advantage in the production of any good or service: can specialize but will not gain from trade. can benefit from trade by specializing in goods in which it has a comparative advantage. can benefit from trade if another country gives up all of its gains. cannot benefit from trade under any circumstances.

Sagot :

A  country that does not have an absolute advantage in the production of any good or service can benefit from trade by specializing in goods in which it has a comparative advantage.

A country has comparative advantage in production if it has a lower opportunity cost in the production of good when compared to other countries. A country should specialise in the production of the good for which it has a comparative advantage and import the goods for which it does not have a comparative advantage. This is the way the country can gain from trade.

A company has an absolute advantage in the production of a product if it produces a larger quantity of the product in comparison to other countries.  

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