Trade can be beneficial to trading partners because:

Question

Quizplus · Accepted Answer

Trade allows countries to specialize in producing what they can produce most efficiently, resulting in lower opportunity costs of producing goods and services. This leads to more goods and services being available at a lower cost for trading partners. The other choices are not correct as trade leads to a more efficient use of resources and encourages specialization in activities in which countries have a comparative advantage, and it does not necessarily eliminate unemployment.

Trade Can Be Beneficial to Trading Partners Because