Which of the following describes the reason for international trade?
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Correct Answer: Option D
Explanation:
Comparative cost advantage explains why countries engage in international trade. A country specializes in producing goods for which it has a lower opportunity cost and exchanges them for goods that other countries can produce relatively more efficiently.
Comparative cost advantage explains why countries engage in international trade. A country specializes in producing goods for which it has a lower opportunity cost and exchanges them for goods that other countries can produce relatively more efficiently.