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Explains how mutually beneficial trade can take place even when one nation is less efficient than, or has an absolute disadvantage with respect to, another nation in the production of all commodities. the less efficient nation should specialize in and export the commodity in which its absolute disadvantage is smaller (this is the commodity of its comparative advantage), and should import the other commodity
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Explains how mutually beneficial trade can take place even when one nation is less efficient than, o...
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