How does international trade affect the standard of living?
A)It raises the standard of living in all trading countries.
B)It lowers the standard of living in all trading countries.
C)It leaves the standard of living unchanged.
D)It raises the standard of living for importing countries and lowers it for exporting countries.

Question

Quizplus · Accepted Answer

International trade allows countries to specialize in producing goods that they have a comparative advantage in, and import goods that they are less efficient at producing. This leads to increased efficiency, lower costs, and ultimately higher productivity and output. As a result, it can lead to higher incomes, more job opportunities, and greater access to a wider variety of goods and services for people in all trading countries, raising the overall standard of living.

How Does International Trade Affect the Standard of Living