The statement is false. According to the basic and the gain from trade with increasing cost, the degree of specialization in production would be determined by the relative commodity prices. In other word, the nations would specialize until the relative prices become equal in 2 nation Such as the export of commodity x in nation1 equal to the import of commodity of x in nation2. In Post-trade consumption, 2 nations will consumes outside its production frontier on higher indifferent curve. The consumption point after trade would move from lower indifferent curves to higher indifferent curves, resulting in the higher level of satisfaction.