Which statement is true?
A)Every nation should try to be completely self-sufficient.
B)International trade lowers our standard of living.
C)The basis for international trade is specialization.
D)Importing consumer products increases our prices.

Question

Quizplus · Accepted Answer

The basis for international trade is specialization, which allows countries to focus on producing the goods and services where they have a comparative advantage, and then trade with other countries for the goods and services they need but cannot produce as efficiently.

Answer: None of the other options are true. A is not true because complete self-sufficiency is unlikely and can impede progress and innovation. B is not true because international trade can provide access to goods and services that may not be available domestically, and can increase efficiency and productivity. D is not true because importing consumer products can actually lower prices by increasing competition and providing consumers with more options.

Which Statement Is True