International trade

Question

International trade

Quizplus · Accepted Answer

International trade allows for countries to specialize in producing and exporting goods and services that they have a comparative advantage in, while also importing goods and services that they do not specialize in. This increases consumption possibilities for consumers as they have access to a wider variety of goods and services at potentially lower prices. While international trade may have some impact on consumer prices, it has been shown to overall result in lower prices for consumers due to increased competition. International trade can also lead to greater efficiency and innovation in production, potentially leading to increased production possibilities rather than reduced ones. Lastly, international trade can also result in increased resource consumption as the production of goods and services requires the use of resources.

International Trade