Which of the following concepts provides the basic rationale for international trade?

Question

Quizplus · Accepted Answer

The concept of comparative advantage provides the basic rationale for international trade. It suggests that each country should specialize in the production of those goods and services in which it has a lower opportunity cost and trade with other countries for goods and services in which they have a comparative advantage. This leads to higher efficiency, greater output, and lower prices for consumers in all countries involved in trade.

Which of the Following Concepts Provides the Basic Rationale for International