International trade allows countries to specialize in producing goods and services in which they have a comparative advantage, and to trade with other countries to obtain goods and services that they cannot efficiently produce themselves. This allows all countries to consume beyond their production possibilities, benefiting both rich and poor countries alike.

Solved

International Trade

Question 29

Multiple Choice

International trade:

A) Benefits rich countries but not poor countries.
B) Allows all countries to consume beyond their production possibilities.
C) Forces poor countries to consume exactly what they produce.
D) Requires poor countries to import more than they export.

Correct Answer: