Specialization according to ____________________ advantage enables ____________________ partners in international trade to be better off.

Question

Quizplus · Accepted Answer

According to the theory of comparative advantage, specialization based on comparative advantage enables all partners in international trade to be better off. This means that each country should specialize in producing and exporting goods that they can produce at a lower opportunity cost relative to other countries, and import goods that they can produce at a higher opportunity cost relative to other countries. By doing so, all countries can benefit from increased efficiency, lower costs, and expanded production possibilities.

Specialization According to ____________________ Advantage Enables ____________________ Partners in International

Specialization According to Advantage Enables Partners in International