Countries import some goods and export other goods primarily because of:
A) unemployment.
B) self-sufficiency.
C) comparative advantage.
D) the law of increasing opportunity cost.

Question

Quizplus · Accepted Answer

Countries import and export goods based on comparative advantage, meaning a country will focus on producing and exporting goods that they can produce at a lower opportunity cost than other countries, while importing goods that other countries can produce at a lower opportunity cost. This allows for greater efficiency and specialization, and ultimately benefits both trading partners. Unemployment and self-sufficiency may be factors, but they are not the primary reasons for international trade. The law of increasing opportunity cost may play a role in the decision to trade, but it is not the central reason why countries import and export goods.

Countries Import Some Goods and Export Other Goods Primarily Because