Which of the following factors is the most significant in determining the pattern of international trade?

Question

Quizplus · Accepted Answer

Comparative advantage is the most significant factor in determining the pattern of international trade because it considers the opportunity cost of producing a good or service in one country versus another. It takes into account the relative efficiency of production for each country, resulting in countries specializing in producing goods or services where they have a comparative advantage and trading with other countries for goods or services where they have a comparative disadvantage. Absolute advantage, military strength, and geographic size also play a role, but they are not as significant as comparative advantage in determining the pattern of international trade.

Which of the Following Factors Is the Most Significant in Determining