The fundamental force that drives international trade is:

Question

Quizplus · Accepted Answer

The fundamental force that drives international trade is comparative advantage. Comparative advantage occurs when one country has a lower opportunity cost of producing a good or service than another country. This allows countries to specialize in producing what they can produce at a lower cost, then trade with other countries to obtain goods and services they cannot produce efficiently. This leads to increased efficiency, productivity, and economic growth for all countries involved in trade. Absolute advantage, cheap labor, and the desire to increase trade surplus are all factors that can contribute to comparative advantage but are not the fundamental force driving international trade.

The Fundamental Force That Drives International Trade Is