Which of the scenarios below best displays how internationaltrade allows for specialization?
A)You are better at mowing lawns than your neighbor who is better at gardening.
B)Truck drivers stay awake on long routes by drinking Colombian coffee.
C)The United States and Canada can both produce lumber, but the U.S.buys lumber from Canada because it has a greater
Yield per acre.
D)Cuba does not have a comparative advantage in producing antibiotics, but due to economic sanctions, relies on its own
Supply of medicines.

Question

Quizplus · Accepted Answer

International trade allows for specialization because countries can focus on producing goods that they have a comparative advantage in producing. In this scenario, the U.S. buys lumber from Canada because it has a greater yield per acre, allowing Canada to specialize in lumber production and the U.S. to focus on other industries where it has a comparative advantage.

Which of the Scenarios Below Best Displays How Internationaltrade Allows