Foreign trade:
A) Increases the scarcity of resources.
B) Makes a country more equitable.
C) Allows a country to have a greater variety of products at a lower cost than if it tried to produce everything at home.
D) Allows a country to avoid trade-offs.

Question

Quizplus · Accepted Answer

Foreign trade allows a country to have access to a greater variety of products at a lower cost than if it tried to produce everything at home. This is because other countries may have a comparative advantage in producing certain goods due to lower production costs or better technology, which can then be imported at a lower cost than producing them domestically, leading to increased efficiency and lower prices for consumers. This does not necessarily increase the scarcity of resources, nor does it necessarily make a country more equitable or allow it to avoid trade-offs.

Foreign Trade