Country X can produce either 6 units of wine or 3 units of cheese with the same resources, while Country Y can produce either 4 units of wine or 2 units of cheese. If both countries decide to specialize based on their comparative advantages and then trade, which scenario best illustrates the principle of comparative advantage?

Comparative advantage means that a country can produce a good at a lower opportunity cost than another country. In this case, Country X can produce 6 units of wine or 3 units of cheese, which means it gives up 2 units of wine for each unit of cheese. On the other hand, Country Y can produce 4 units of wine or 2 units of cheese, giving up 2 units of wine for each unit of cheese as well. However, since Country X can produce more wine overall, it has an absolute advantage in wine production, while Country Y has an absolute advantage in cheese production. If Country X specializes in wine and Country Y specializes in cheese, they can trade to get both wine and cheese, leading to a better outcome for both countries.