Foreign trade
A)increases the scarcity of resources.
B)makes a country more equitable.
C)allows a country to have a greater variety of products at a lower cost than if it tried to produce everything at home.
D)allows a country to avoid trade-offs.

Question

Quizplus · Accepted Answer

Foreign trade allows a country to have a greater variety of products at a lower cost than if it tried to produce everything at home. This is because different countries have different resources, skills, and technologies, and they can specialize in producing certain goods or services more efficiently than others. By trading with other countries, a country can import goods that it cannot produce or that it can only produce at a much higher cost domestically, and it can export goods that it can produce more efficiently or at a lower cost than other countries. This leads to a more efficient allocation of resources, higher productivity, and greater consumer choice.

Foreign Trade