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Which of the following describes the reason for international trade

Which of the following describes the reason for international trade
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Balance of payment
  • B Comparative cost advantage
  • C Absolute cost advantage
  • D Balance of trade
Correct Answer: Option B
Explanation:
Comparative advantage is an economic term that refers to an economy's ability to produce goods and services at a lower opportunity cost than that of trade partners. Countries mainly enter into international trade to buy goods and services that they would normally produce at a higher cost compared to buying it from another country that is producing it a relatively low cost

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