Countries engaged in international trade to specialize in production based on

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International trade is based on the principle of comparative advantage, which suggests that countries should specialize in the production of goods and services that they can produce at a lower opportunity cost than their trading partners. This allows countries to trade and benefit from economies of scale, leading to increased efficiency and higher global output. Relative levels of GDP, exchange rates, inflation rates, and unemployment rates may affect trade patterns, but they do not determine a country's comparative advantage or its potential gains from trade.

Countries Engaged in International Trade to Specialize in Production Based