Assertion (A): According to HO theorem, a country can gain from trade when it produces at relatively lower costs
Reason (R): Even when a country enjoys absolute advantage in both goods, the country would specialize in the production and export of those goods which are relatively more advantageous.
Both A and R are true and R is the correct explanation of A.
Both A and R are true but R is not the correct explanation of A.
A is true but R is false.
A is false but R is true.
