Trade between two nations ________.
A) results in the maximization of total production
B) reduces global production
C) leads to a maximization of production in one nation and a minimization of production in the other
D) is inefficient compared to a situation where both nations do not engage in international trade

Question

Quizplus · Accepted Answer

International trade allows countries to specialize in producing goods that they are most efficient at producing, thereby maximizing total production. This leads to an increase in global output and an improvement in overall welfare.

Trade Between Two Nations ________