Which term is important for determining how a country can best benefit from trading with another country?
A. Absolute advantage
B. Comparative advantage
C. Development advantage
D. Efficiency advantage

The term that is important for determining how a country benefits from trading with another is Comparative Advantage . This principle highlights how countries can produce certain goods more efficiently and trade for others, enhancing overall economic benefit. A classic example is when one country produces a specific good at a lower opportunity cost, allowing for mutually beneficial trade. ;

Answered by GinnyAnswer | 2025-07-07

The key term for determining how a country can benefit from trading with another country is Comparative Advantage , which involves producing goods at a lower opportunity cost. This concept encourages countries to specialize and trade effectively, leading to mutual economic benefits. Specializing based on comparative advantage allows for more efficient production and trade.
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Answered by Anonymous | 2025-07-14