International trade tends to be complete, rather than partial, when which of the following occurs?
A) constant opportunity cost
B) increasing opportunity cost
C) negative opportunity cost
D) positive opportunity cost

Question

Quizplus · Accepted Answer

Complete specialization and international trade occur when there is constant opportunity cost, meaning that the opportunity cost of producing one good in terms of the other remains constant no matter how much of each is produced. This enables countries to specialize in the production of the good in which they have a comparative advantage and trade with one another for mutual benefit. In contrast, increasing opportunity cost makes complete specialization less beneficial, while negative or positive opportunity cost is not a meaningful concept in economics.

International Trade Tends to Be Complete, Rather Than Partial, When