Answer:
The trade between two nations is mutually beneficial if each specializes in the good in which it has a comparative advantage is a TRUE statement.
Step-by-step explanation:
- If a raw material that is needed for the production of a specific commodity is available in abundance within the domestic boundaries of a country, the production of that particular commodity becomes way more economical for the country more than any other country.
- Trading in such a commodity with another countries, gives the producing country a competitive advantage as it fetches more profit through the trade of such commodities.