Country X produces coffee more efficiently than it produces tea, while Country Y can produce both coffee and tea but does so less efficiently. If Country X specializes in coffee and Country Y specializes in tea, what will be the likely outcome of their trade?

When Country X specializes in coffee because it can produce it more efficiently, it makes more coffee than it would if it also tried to make tea. Meanwhile, Country Y, which is less efficient at producing both coffee and tea, focuses on tea, where it can still produce something valuable. This means that Country X will have a lot of coffee to trade, and Country Y will have a lot of tea. When they trade, both countries will end up with more coffee and tea than if they tried to produce both on their own. For example, if Country X produces 100 bags of coffee and Country Y produces 50 bags of tea, they can trade and both enjoy a greater variety of products.