Over time, international trade enables an economy to:

Question

Quizplus · Accepted Answer

International trade allows countries to specialize in producing what they are best at and import goods or services that they do not produce as efficiently. This results in an efficient allocation of resources, which allows for smoother consumption. For example, a country that produces a surplus of wheat can trade with a country that produces a surplus of rice, both countries will benefit from being able to consume a variety of goods at a lower cost. However, a country may experience variations in consumption due to changes in the terms of trade, changes in demand for goods or services, or changes in the global economy.

Over Time, International Trade Enables an Economy To