International trade increases world economic efficiency for the same reasons that domestic trade increases national economic efficiency.

Question

Quizplus · Accepted Answer

International trade allows countries to specialize in the production of goods and services in which they have a comparative advantage, leading to greater efficiency and lower costs. This results in increased economic growth and higher standards of living for all participating countries. This is the same reason why domestic trade increases national economic efficiency.

International Trade Increases World Economic Efficiency for the Same Reasons