International trade is most likely to occur whenever:

Question

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International trade is most likely to occur when trading nations gain from trade. This happens when each country specializes in producing goods they have a comparative advantage in and then trading those goods with other countries. This leads to increased efficiency and a larger overall output, benefiting all countries involved. Absolute advantage (A) and self-sufficiency (B) are not necessary conditions for international trade, and world production equals consumption (C) is not always achievable due to differences in demand and supply between countries. While cheaper labor abroad (E) can be a factor, it is not the only reason for international trade and may not always be enough to drive trade.

International Trade Is Most Likely to Occur Whenever