Comparative advantage and international trade are driven by ________.

Question

Quizplus · Accepted Answer

Comparative advantage and international trade are driven by low opportunity costs in the production of goods and services. This means that a country should specialize in producing goods and services that they can produce at a lower opportunity cost than other countries. By doing so, they can trade with other countries to obtain goods and services that they may not be able to produce at a lower opportunity cost. This leads to an increase in overall economic efficiency and welfare for all countries involved.

Comparative Advantage and International Trade Are Driven by ________