Higher Total Output By specializing and trading based on comparative advantage, each producer increa
Higher Total Output By specializing and trading based on comparative advantage, each producer increases his total output. This maximizes the total amount of goods available in the economy and improves living standards for everyone involved. Gains from Trade Even if a country is less efficient at producing both goods, it can still benefit from trade. For instance, if one country is much better at producing one good and the other country is better at producing a different good, both can benefit by specializing and exchanging goods.