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Can two Countries Benefit from Trade if neither has a Comparative Advantage?

Can two Countries Benefit from Trade if neither has a Comparative Advantage?

We've seen in a couple of lessons how when two countries have comparative advantages in the production of two different goods, they can both benefit by specializing and trading with one another. But what if two countries have identical opportunity costs for the production of two goods? That's the special case we'll examine in this lesson.

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More about this material

Material Type:
Tutorial
Date Added to MERLOT:
July 13, 2021
Date Modified in MERLOT:
September 16, 2021
Author:
Submitter:
Cathy Swift
Asian American, Native American, Pacific Islander Serving Institution Hispanic Serving Institution
Primary Audience:
College General Ed, College Lower Division, College Upper Division
Technical Format:
Video, Website
Mobile Compatibility:
Not specified at this time
Language:
English
Cost Involved:
No
Source Code Available:
Unknown
Creative Commons:
No

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