Elucidate unequivocally why the foundation of trade has, Ask an Expert

Economics

The theory of comparative advantage

Explain unequivocally why the foundation of trade has nothing to do with absolute advantage and only the law of comparative advantage is relevant.

Isn't free trade good for two countries even if one of them has an absolute advantage (in terms of low costs and productivity) in all goods and services produced?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9215643

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