If Two Countries Specialize in the Production of Goods in Which

question 131

True/False

If two countries specialize in the production of goods in which they have a comparative advantage, they can experience gains from trade.

---

Definitions:

Paraguay

A landlocked country in South America known for its rich culture, history, and expansive natural landscapes, with a mixed economy that includes agriculture, manufacturing, and services sectors.

Televisions

Electronic devices designed to receive broadcast signals and display them as moving images and sound, serving as a primary source of entertainment and information.

World Price

The global market price of a commodity, determined by supply and demand dynamics across international markets.

Uruguay

A country in South America, known for its verdant interior and seaside capital, Montevideo, with a stable democracy and high levels of social spending.