Trade that is within a country or between countries is based on the principle of
A)absolute advantage.
B)scarcity.
C)competition.
D)comparative advantage.

Question

Quizplus · Accepted Answer

Trade between countries is based on the principle of comparative advantage, which means that each country should specialize in producing the goods or services in which it has a lower opportunity cost compared to other countries. This leads to increased efficiency and productivity, and ultimately benefits all countries involved in international trade.

Trade That Is Within a Country or Between Countries Is