According to international trade theory, a country should import goods in which it has a comparative disadvantage.
The various explanations for international trade are merely known as international trade theories. The idea of trading products and services between two parties is known as trade. The idea of this interaction between individuals or companies in two separate countries is called international trade.
People and entities engage in trade because they think they stand to gain from it. They might require or desire the products or services.
According to the comparative advantage hypothesis, a nation that focuses on its comparative advantage in free trade is able to achieve larger output benefits by exporting the good in which it has a comparative advantage and importing the good in which it has a comparative disadvantage.
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