_______________ occurs primarily because of relative price differentials among nations.

Question

Quizplus · Accepted Answer

International trade occurs primarily because of relative price differentials among nations. This means that countries can gain a comparative advantage in producing certain goods and services, and then trade those goods and services with other countries who have a comparative advantage in producing different goods and services. This leads to a more efficient allocation of resources and can result in increased economic welfare for all countries involved.

_______________ Occurs Primarily Because of Relative Price Differentials Among Nations