Trade increases productivity when production is carried out by the person/group with the comparative advantage.

Question

Quizplus · Accepted Answer

According to the principle of comparative advantage, trade allows countries to specialize in the production of goods and services in which they have a lower opportunity cost, resulting in increased productivity and economic efficiency. Therefore, trade increases productivity when production is carried out by the person/group with the comparative advantage.

Trade Increases Productivity When Production Is Carried Out by the Person/group