Asked by Claudia Reyes on May 09, 2024
Verified
International trade based on the principle of comparative advantage creates a more efficient allocation of world economic resources.
Comparative Advantage
The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors.
World Economic Resources
It refers to all natural, human, and capital resources that are available globally which support economic production and development.
- Recognize the principle of comparative advantage and its influence on the dynamics of international trade.
- Understand the impact of tariffs, quotas, and free trade on international trade efficiency.
Verified Answer
MV
Meher VishnuMay 14, 2024
Final Answer :
True
Explanation :
Comparative advantage allows countries to specialize in the production of goods and services they can produce most efficiently relative to other countries, leading to a more efficient allocation of global resources, increased total output, and higher standards of living.
Learning Objectives
- Recognize the principle of comparative advantage and its influence on the dynamics of international trade.
- Understand the impact of tariffs, quotas, and free trade on international trade efficiency.
Related questions
If Two Nations Specialize According to Their Respective Comparative Advantage ...
The Nation That Has a Comparative Advantage in a Particular ...
In a Two-Nation, Two-Good World, If One Nation Is More ...
Assume That by Devoting All Its Resources to the Production ...
Tariffs Create Larger Gains to Domestic Producers Than Losses to ...