One of the basic principles of international trade refers to how states produce what they are best at producing and then trading the surplus for other goods.This is also known as
A) surplus trade rules.
B) export controls.
C) comparative advantage.
D) none of the above.

Question

Quizplus · Accepted Answer

This principle is known as comparative advantage, which is the ability of a country to produce a particular good or service at a lower opportunity cost than another country. By specializing in producing the good or service in which it has a comparative advantage, a country can trade with other countries and benefit from consuming goods and services it cannot produce efficiently itself.

One of the Basic Principles of International Trade Refers to How