Why is trade always possible between two countries

Reference no: EM131929886

Question: 1. According to the theory of comparative advantage as explained by Ricardo, why is trade always possible between two countries, even when one is absolutely inefficient compared to the other?

2. The factor proportions theory of international trade assumes that all countries produce the same product the same way. Would international competition cause or prevent this from happening?

Reference no: EM131929886

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