Final answer:
The statement is true; nations will achieve a higher standard of living by specializing in goods with a comparative advantage and importing those with a comparative disadvantage. This is based on the theory of comparative advantage, which increases the availability of goods and raises living standards by allowing consumption beyond domestic production limits.
Step-by-step explanation:
The statement that nations will attain a higher level of living by specializing in goods for which they possess a comparative advantage and importing those for which they have a comparative disadvantage is True.
The theory of comparative advantage is a cornerstone of international trade theory, suggesting that countries should specialize in the production of goods and services where they have a lower opportunity cost compared to other nations. By doing so, they can trade with other countries to obtain goods and services in which they do not specialize, thus enjoying a wider variety of goods and services than if they were to rely solely on domestic production.
This allows countries to consume beyond their own production possibilities curve and increases the overall quantity of goods and services available to consumers, raising the living standards. It is important to note that while the theory primarily discusses trade between industries across different countries, a high proportion of trade occurs within the same industry (intra-industry trade), meaning countries may both export and import similar products, like in the case of the United States trading autos.