If country a has a comparative advantage in the production of automobiles and country b has a comparative advantage in the production of boats, both country will gain from trade.
Comparative advantage is an economy's or business is the advantage a business have over another business.
It occurs when goods are produce at a lower cost compare to other country. The goods are sold to other country who can not produce given them an advantage other countries with more profit to their countries economy.
Therefore, If country a has a comparative advantage in the production of automobiles and country b has a comparative advantage in the production of boats, both country will gain from trade.
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