According to the principle of comparative advantage, trade between two countries will benefit both countries.
A country's capacity to produce a specific good or service for less money than its trading counterparts is known as a comparative advantage. Comparative advantage is a theory that explains why businesses, nations, or people might gain from trade.
Comparative advantage, as it relates to international trade, refers to the goods that a nation can produce more easily or at a lower cost than other nations. Even though this typically shows the advantages of trade, some modern economists now recognize that relying solely on comparative advantages can lead to resource exploitation and depletion in a nation.
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