If every country specializes in what it produces best and then trades,more will be produced than if each country tries to produce everything for its own needs.
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

This statement accurately describes the theory of comparative advantage in international trade, which suggests that each country should specialize in producing the goods and services it can produce most efficiently (i.e. at the lowest opportunity cost) and trade with other countries for goods and services it cannot produce as efficiently. This leads to increased total world output and higher incomes overall.

If Every Country Specializes in What It Produces Best and Then