Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 18 - International Trade and Public Policy - Exercises - 18.1 Benefits from Specialization and Trade - Page 427: 1.8

Answer

In both cases, the country will try to specialize in the commodity in which the country has the comparative advantage as then it will export that commodity. Exports will this be beneficial for the financial condition of any country and will help to develop the country.

Work Step by Step

One would produce a product they have a comparative advantage in is because they would have the ability to produce a certain product the cheapest thus allowing them to make the most profit.
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