The economic basis for trade is

Question

Quizplus · Accepted Answer

The economic basis for trade is comparative advantage, which refers to the ability of a country to produce a good or service at a lower opportunity cost than another country. This allows both countries to benefit by specializing in the production of goods or services in which they have a comparative advantage and trading with each other. The other options listed (race to the bottom, speculative attacks, and insourcing) do not accurately describe the economic basis for trade.

The Economic Basis for Trade Is