Under international trade we export those goods for which we have a relatively low

Question

Quizplus · Accepted Answer

Under international trade, we try to export goods for which we have a relatively lower opportunity cost. Opportunity cost refers to the cost of an alternative that must be forgone to pursue a certain action or choice. In simple terms, it means the cost of the best alternative foregone. Therefore, we try to export those goods where we have a comparative advantage and a lower opportunity cost compared to other countries. This enables us to specialize in the production of goods that we can produce efficiently and at a lower cost, and import goods that we cannot produce efficiently.

Under International Trade We Export Those Goods for Which We