One benefit of trade is that it:

Question

Quizplus · Accepted Answer

Trade allows for countries to specialize in their comparative advantages, which can lead to increased efficiency and lower costs of production through mass-production techniques. This can result in lower prices for consumers and increased economic growth for countries involved in trade. Option A is not accurate because trade actually increases the division of labor, not knowledge. Option C is incorrect because lowering productivity would lead to decreased economic growth and fewer job opportunities. Option D is also incorrect because economies of scale refer to the cost advantages a business can achieve by increasing the scale of production, which is not decreased by trade.

One Benefit of Trade Is That It