Which of the following might lead a nation to engage in international trade?
A)Differences in natural endowments such as climate
B)Differences in skills of labor force
C)Differences in endowments of natural resources
D)All of the above are correct.

Question

Which of the following might lead a nation to engage in international trade?
A)Differences in natural endowments such as climate 
B)Differences in skills of labor force 
C)Differences in endowments of natural resources 
D)All of the above are correct.

Quizplus · Accepted Answer

All of the above reasons can lead a nation to engage in international trade. Differences in natural endowments such as climate can lead to differences in the availability of certain goods and resources, while differences in skills of labor force can lead to differences in the ability to produce certain goods more efficiently. Additionally, differences in endowments of natural resources can also lead to specialization and trade.

Which of the Following Might Lead a Nation to Engage