Which of the following factors is most significant in determining the pattern of international trade?

Question

Quizplus · Accepted Answer

Comparative advantage is the most significant factor in determining the pattern of international trade. It refers to a country's ability to produce a particular good or service at a lower opportunity cost than another country. This enables countries to specialize in the production of goods and services in which they have a comparative advantage and trade with other countries to obtain goods in which they do not have a comparative advantage. This leads to increased efficiency and growth in global trade.

Which of the Following Factors Is Most Significant in Determining