How does international trade affect the standard of living?
A) It raises the standard of living in all trading countries.
B) It lowers the standard of living in all trading countries.
C) It raises the standard of living in the exporting country and lowers it in the importing country.
D) It raises the standard of living in the importing country and lowers it in the exporting country.

Question

Quizplus · Accepted Answer

International trade allows countries to specialize in producing goods in which they have a comparative advantage, leading to increased efficiency and lower prices. This, in turn, increases the purchasing power of consumers, raises the level of consumption, and improves the standard of living for all countries involved in the trade.

How Does International Trade Affect the Standard of Living