The basis of the benefits of specialization is _____

Question

Quizplus · Accepted Answer

Specialization is primarily driven by comparative advantage, which means that different countries have different strengths and weaknesses in terms of their ability to produce certain goods or services efficiently. By focusing on producing the goods or services they are comparatively better at, countries can increase productivity, trade with other countries for the goods and services they are relatively less efficient at producing, and ultimately enjoy higher standards of living. The other answer choices do not capture the essence of the benefits of specialization.

The Basis of the Benefits of Specialization Is _____