International trade occurs because the opportunity cost of producing specific goods differs across:

Question

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International trade occurs because different countries have different opportunity costs in producing goods. Countries can produce and export goods for which they have a comparative advantage in production, and import goods for which they have a comparative disadvantage. This allows countries to specialize in producing certain goods and benefit from gains in efficiency and increased access to a wider variety of goods.

International Trade Occurs Because the Opportunity Cost of Producing Specific