International trade is similar to local trade because:

Question

Quizplus · Accepted Answer

Both international trade and local trade are based on the concept of comparative advantage, which means that each country or region specializes in producing goods or services that they can produce efficiently and at a lower opportunity cost than other countries or regions. This leads to increased efficiency and economic growth. The other options are incorrect - specialization occurs in both types of trade, efficiency is not guaranteed in all cases, and political considerations can be a factor in both types of trade.

International Trade Is Similar to Local Trade Because