Gains from trade will result if a country specializes in:

A) all of its goods.
B) the goods in which it has a comparative advantage.
C) goods in which it has an absolute advantage.
D) goods in which it has an absolute and comparative advantage.

Comparative Advantage

The skill of an entity, whether a person, corporation, or country, to create a product or service with smaller opportunity costs than its competition.

Absolute Advantage

Absolute advantage is the ability of a country or entity to produce a good or service more efficiently than others, using fewer resources.

Trade

The exchange of goods or services between individuals, businesses, or countries.