Countries tend to export products that they can produce better or less expensively than other countries and import products they cannot produce as effectively.

Question

Quizplus · Accepted Answer

This statement is known as the principle of comparative advantage, which states that countries should specialize in producing goods that they can produce more efficiently and at a lower cost than other countries. By doing so, they can increase their overall productivity and efficiency, and improve their standard of living. Additionally, importing goods that they cannot produce as effectively helps to fill the gaps in their own production and meet the demands of their consumers.

Countries Tend to Export Products That They Can Produce Better