Trade
A)can make every participating nation better off.
B)makes some participating nations better off and others worse off.
C)makes a participating nation better off only if the nation cannot produce that good itself.
D)helps developed countries and hurts developing countries.

Question

Trade
A)​can make every participating nation better off.
B)​makes some participating nations better off and others worse off.
C)​makes a participating nation better off only if the nation cannot produce that good itself.
D)​helps developed countries and hurts developing countries.

Quizplus · Accepted Answer

Trade can make every participating nation better off through specialization and comparative advantage. Each country can specialize in producing the goods and services in which it has a comparative advantage, and then trade with other countries for goods and services in which they have a comparative advantage. This leads to higher productivity, lower costs, and increased output, ultimately benefiting all participating nations.