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By specialising in goods which they produce at a lower opportunity cost (comparative advantage), countries can increase their total wealth because they can focus on production they are best at, trading that production to other countries who can produce goods they want for lower prices. When all countries are producing goods most efficiently and trading, everyone is better off, regardless of resource distribution.

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βˆ™ 14y ago
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Q: Why does trade benefit both countries with abundance and countries with few resources?
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