Consider the sources of the gains from international trade.Economies of scale and product differentiation can provide an explanation for

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Quizplus · Accepted Answer

Economies of scale and product differentiation allow countries to specialize in producing certain goods more efficiently and effectively, which in turn can result in lower prices for consumers and increased productivity for firms. This specialization often leads to countries trading in similar products, as they each focus on producing what they can make best.

Consider the Sources of the Gains from International Trade