One of the key benefits of international trade is that it allows consumers and producers to benefit by exploiting each country's comparative advantage.

Question

Quizplus · Accepted Answer

Comparative advantage refers to the ability of a country to produce a good or service at a lower opportunity cost than another country. International trade allows countries to specialize in producing the goods and services where they have a comparative advantage and trade with other countries for goods and services where they do not have a comparative advantage, resulting in more efficient production and greater benefits for consumers and producers in both countries.

One of the Key Benefits of International Trade Is That