Which of the following factors is the most significant in determining the pattern of international trade?

Question

Quizplus · Accepted Answer

Comparative advantage is the most significant factor in determining the pattern of international trade. It refers to a country's ability to produce a particular good or service at a lower opportunity cost than another country. This means that a country can specialize in producing and exporting the goods and services it can produce most efficiently and import the goods and services it produces less efficiently. This creates mutual gains from trade and benefits both countries.

Which of the Following Factors Is the Most Significant in Determining