International specialization and the gains that result from trade do not arise because of _________.

Question

Quizplus · Accepted Answer

International specialization and the gains from trade primarily arise due to factors like scale economies, differences in factor endowments, and differences in technology. The location of multinationals, while influential in global business dynamics, is not a fundamental cause of international specialization and the gains from trade. These gains are more directly related to the comparative advantages that countries have due to the other listed factors.

International Specialization and the Gains That Result from Trade Do