What is the basis of specialization?

Question

Quizplus · Accepted Answer

The basis of specialization is comparative advantage, which means that countries should specialize in producing goods and services they can produce at a lower opportunity cost than other countries. This allows for more efficient production and trade, leading to mutual benefits for all countries involved. The concept of absolute advantage (A) is related but not as widely applicable, while trade enhancement (C) and incentive enhancement (D) are not directly related to the concept of specialization.

What Is the Basis of Specialization