If a nation is more productive than a trading partner, can it still gain from tr

Question

If a nation is more productive than a trading partner, can it still gain from trade with that partner? Use the concepts of absolute and comparative advantage to explain.
Please no copy and paste from others and kindly ONLY answer if you are economist and 100% sure If a nation is more productive than a trading partner, can it still gain from trade with that partner? Use the concepts of absolute and comparative advantage to explain.
Please no copy and paste from others and kindly ONLY answer if you are economist and 100% sure
Please no copy and paste from others and kindly ONLY answer if you are economist and 100% sure

Explanation / Answer

If a nation is overall more productive than a trading partner, it will still gain by trade from that partner. Here, we will take example of two countries - US and India. Even though, US has absolute advantage in trade but trading will help both the countries in being better off than they were before.

Suppose, one worker in India can produce 10 apples and 60 gems & jewelry products and one worker in US produces 50 apples and 30 gems & jewelry products. In absolute terms, US has absolute advantage in apples and India has absolute advantage in gems & jewelry products. If both the countries trade in the goods in which they have comparative advantage, they can both gain. Here, if India exports some gems to US and US exports some apples to India, both the countries will have a higher consumption of other goods apart from the ones in which they have absolute advantage.

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