Countries that engage in trade will tend to specialise in the production of goods and services in which they have ________ and will ________ these goods and services.

Question

Quizplus · Accepted Answer

According to the theory of comparative advantage, countries will specialize in producing goods and services in which they have the lowest opportunity cost compared to other countries. This results in a comparative advantage, allowing the country to produce and export these goods and services at a lower cost than other countries. Therefore, the correct answer is (C) a comparative advantage; export.

Countries That Engage in Trade Will Tend to Specialise in the Production