Arrange the following steps in the correct order to illustrate how countries benefit from trade based on absolute and comparative advantage: A. Countries specialize in producing goods where they have a comparative advantage. B. Countries engage in trade to exchange goods. C. Countries assess their production capabilities to determine absolute advantage. D. Countries increase overall efficiency and consumption through trade.

To understand how countries benefit from trade, the first step is for countries to assess their production capabilities to determine absolute advantage, which is step C. Once they know what they can produce most efficiently, they can specialize in producing goods where they have a comparative advantage, which is step A. After specialization, countries engage in trade to exchange these goods, represented by step B. Finally, through trade, countries can increase overall efficiency and consumption, as shown in step D. For example, if Country A is better at producing wheat and Country B is better at making cars, Country A will focus on wheat, Country B on cars, and then they can trade to enjoy both products efficiently.