Countries choose to specialize and trade with one another because the gains from trade are greater than the losses.

Question

Quizplus · Accepted Answer

Specialization and trade allow countries to benefit from the comparative advantage of producing goods and services where they have a lower opportunity cost. This leads to greater efficiency and increased production, resulting in lower prices and higher quality products for consumers. Overall, the gains from trade are greater than the losses, making specialization and trade a mutually beneficial strategy for countries.

Countries Choose to Specialize and Trade with One Another Because