Samuelson Criterion

The Samuelson Criterion is a principle in international trade theory suggesting that a country should specialize in producing and exporting goods for which it has a comparative advantage—in other words, goods it can produce most efficiently relative to others. This specialization maximizes global welfare by increasing total output and resource use efficiency. In simple terms, it means countries benefit by focusing on making what they are best at, which leads to better overall economic outcomes for everyone involved.