Final answer:
True, countries cannot consume at after-trade consumption levels without engaging in international trade, as trade allows for specialization and access to a greater variety of goods and higher standards of living.
Step-by-step explanation:
The statement is True: Without engaging in international trade, Freedonia and Desonia would not have been able to consume at the after-trade consumption bundles. International trade allows countries to specialize in the production of goods and services in which they have a comparative advantage. By trading, countries can consume more than they would be able to produce on their own. This principle underlies the success stories of economies like Japan, the East Asian Tiger economies, China, India, and also the rationale behind agreements such as the North American Free Trade Agreement (NAFTA). When countries open up to trade, they can experience economic benefits and higher standards of living, while countries that do not engage in international trade risk being left behind economically.