In international trade, access to factors of production:
A) offers companies an invaluable source of new ideas.
B) reduces the gains a company can obtain by leveraging competitive advantages.
C) helps even out some of the resource imbalances among nations.
D) increases the chances that a country's comparative advantage changes.

Question

Quizplus · Accepted Answer

Access to factors of production such as land, labor, and capital can help even out resource imbalances among nations. For example, a country with abundant natural resources but a shortage of skilled labor may benefit from trade with a country with highly educated workers but few natural resources. This can lead to greater efficiency and productivity, ultimately benefiting both countries involved in the trade.

In International Trade, Access to Factors of Production