When international trade is based on the concept of comparative advantage,then a country will specialize in producing goods that the country can produce ________.

Question

Quizplus · Accepted Answer

According to the concept of comparative advantage, a country will specialize in producing goods that they can produce at a lower cost than other countries. This means that they will allocate their resources towards producing goods that they can produce efficiently and effectively, while importing goods that they cannot produce as efficiently. This allows for both domestic and foreign consumption to increase and for overall economic efficiency to maximize.

When International Trade Is Based on the Concept of Comparative