Which of the following might lead a nation to engage in international trade?

Question

Quizplus · Accepted Answer

All three factors can lead a nation to engage in international trade. Differences in natural endowments such as climate can affect what goods a country can produce efficiently. Differences in skills of the labor force can affect the type of goods that a country can produce efficiently. Differences in endowments of natural resources can affect the cost of producing goods. By engaging in international trade, countries can specialize in the production of certain goods and then trade with other countries for goods that they cannot produce efficiently or at a lower cost.

Which of the Following Might Lead a Nation to Engage