If two nations who are each capable of producing consumer and capital goods agree to trade based on comparative advantage, then
a) the two nations will become more independent of each other.
b)the citizens of both nations will have a better standard of living.
Answer
a) the two nations will become more independent of each other.
In this case, each country will increase its overall consumption by exporting the good for which it has a comparative advantage while importing the other good
Explanation
This is because more of each good could be produced by relying on comparative advantage meaning that nations specialize forcing them rely on each other and selling the goods in which they specialize and purchase other goods. In addition, each country will increase its overall consumption by exporting the good for which it has a comparative advantage while importing the other good only if there is differences in labor productivity in the two nations
