A country can gain by importing a good from abroad even if that good can be produced more efficiently at home. Is this statement true?

What will be an ideal response?


This statement can be true. Such imports make sense if they enable the country to specialize in producing those goods at which it is even more efficient. In determining the most efficient patterns of production and trade, it is comparative advantage that matters. Two countries can gain by trading even if one country is more efficient than another in the production of every good.

Economics

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