Importing and exporting of goods and services can lead to increases in specialization and knowledge that can:

Question

Quizplus · Accepted Answer

International trade allows countries to specialize in the production of goods and services in which they have a comparative advantage, leading to more efficient production and potentially increasing total factor productivity. This is because countries can focus on producing goods and services that they are most efficient at, utilizing their resources more effectively, and often benefiting from technological improvements and knowledge transfer.

Importing and Exporting of Goods and Services Can Lead to Increases