Specialization increases total world output.
Increased total world output occurs since trade allows each country to produce at a lower opportunity cost,boosting overall production and incomes.

Question

Quizplus · Accepted Answer

Specialization allows countries to produce goods and services in which they have a comparative advantage, meaning they can produce them at a lower opportunity cost than other countries. By trading these products with other countries, they can obtain goods and services that they cannot produce as efficiently themselves. This leads to increased overall production and incomes as each country is able to focus on what they are best at producing.

Specialization Increases Total World Output