The basis for international trade is
A)that a nation can import a particular good or service at a lower cost than if it were produced domestically.
B)Specialization.
C)both countries can gain from trade.
D)All of the choices are true.

Question

Quizplus · Accepted Answer

All of the choices are true. International trade is based on the principle of comparative advantage, which states that each country should specialize in producing the goods and services that it can produce most efficiently, and then trade with other countries for goods and services that they can produce more efficiently. This allows both countries to benefit from trade by increasing efficiency, lowering costs, and expanding markets.

The Basis for International Trade Is