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Country A specializes in producing kiwis. Country B specializes in producing oranges. As a result, Country A can consume more kiwis and oranges than it could have if it had tried to grow kiwis oranges itself and had decided not to trade. This illustrates the concept of: Group of answer choices The gains of trade Absolute advantage Supply

Sagot :

This scenario better illustrates the concept of absolute advantage, as both countries are specialized in one product.

What is the absolute advantage?

It is an economic approach that helps to understand how a country's specialization in the production and sale of a product and service helps economic development, as there can be trade between countries with different specializations, generating funds obtained from the export of goods.

Therefore, absolute advantage helps countries to trade and develop economically.

Find out more about absolute advantage here:

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