Specialization and trade

Question

Quizplus · Accepted Answer

Specialization and trade benefit both rich and poor countries. Rich countries can access cheaper goods and services from poor countries, leading to increased consumer welfare and lower inflation rates. Poor countries can gain access to the global market and improve their economic growth by exporting their goods and services, which in turn creates more jobs and increases standard of living. Hence, specialization and trade create mutually beneficial relationships between countries with different levels of economic development.

Specialization and Trade