To gain from comparative advantage, countries must trade, and must

Question

Quizplus · Accepted Answer

To benefit from comparative advantage, countries must specialize in producing the goods or services that they can produce at a lower opportunity cost than other countries. This means they can produce them more efficiently and at a lower cost, which makes them more competitive in the international market. However, to gain the maximum benefit from specialization, countries must also trade with one another to access goods and services that they cannot produce as efficiently or at all. Therefore, the correct choice is E, specialize, as this is the essential factor for gaining from comparative advantage.

To Gain from Comparative Advantage, Countries Must Trade, and Must