The fundamental force that drives international trade is

Question

Quizplus · Accepted Answer

The fundamental force that drives international trade is comparative advantage, which is the ability of a country to produce a good or service at a lower opportunity cost than another country. This creates a mutually beneficial exchange where each country specializes in producing the goods or services where they have a comparative advantage and then trades with other countries to obtain the goods or services that they do not have a comparative advantage in producing. This allows for increased efficiency and productivity, which leads to economic growth and prosperity. The other options listed, such as importation duties or export advantage, may play a role in the trade policies of individual countries, but they do not drive the overall force of international trade.

The Fundamental Force That Drives International Trade Is