Foreign trade
A)benefits only small countries that cannot produce everything.
B)benefits only large countries that have a comparative advantage in producing everything.
C)can benefit no country.
D)can benefit small or large countries.
E)benefits only small countries that have a comparative disadvantage.

Question

Quizplus · Accepted Answer

Foreign trade can benefit both small and large countries because it allows them to specialize in the production of goods and services in which they have a comparative advantage, and then trade with others for goods and services they do not produce as efficiently. This leads to increased efficiency and productivity, lower prices for consumers, and overall economic growth.  Therefore, the correct choice is D.

Foreign Trade