Specialisation and trade can:

Question

Quizplus · Accepted Answer

Specialisation and trade allow countries to focus on producing goods and services that they have a comparative advantage in, leading to increased efficiency and productivity. This ultimately leads to an increase in economic growth and higher standards of living for the citizens of the country. Thus, option D is the best answer. Option A is incorrect as absolute advantage is not necessary for countries to benefit from specialisation and trade. Option B is incorrect as specialisation and trade can benefit all nations involved. Option C is incorrect as specialisation and trade do not necessarily lead to an increase in debt.

Specialisation and Trade Can