The basis of the benefits of specialization is:

Question

Quizplus · Accepted Answer

Specialization is based on the principle of comparative advantage, which states that a country should specialize in producing the goods and services they can produce at a lower opportunity cost than other countries, and trade with other countries to obtain goods and services they cannot produce as efficiently. This leads to increased efficiency, productivity, and overall welfare for all countries involved in international trade. Absolute advantage, the size of the country, and identical production costs are not the basis of the benefits of specialization. Agreeable terms of trade may be a result of specialization, but it is not the basis of its benefits.

The Basis of the Benefits of Specialization Is