A primary reason why nations conduct international trade is because

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) illustrates the trade-offs faced by an economy that produces only two goods. It shows the maximum quantity of one good that can be produced for each possible quantity of the other good produced. The slope of the PPF reflects the opportunity cost of producing one good in terms of the other. When the opportunity cost of producing a good is lower in another country, it becomes more efficient for the two countries to trade with each other. Nations conduct international trade because certain goods and services can be obtained more cheaply or efficiently in other countries. Choice D correctly explains this concept.

A Primary Reason Why Nations Conduct International Trade Is Because