Asked by Vonda Simpson on Jun 14, 2024
Verified
The benefits to trading nations based on comparative advantage accrue from
A) specialization only.
B) specialization and trading.
C) trading only.
D) protection of domestic industries.
Comparative Advantage
A concept in economics that refers to a country's ability to produce goods and services at a lower opportunity cost than that of trade partners.
- Recognize the benefits of specialization and trading based on comparative advantage.
Verified Answer
ZK
Zybrea KnightJun 21, 2024
Final Answer :
B
Explanation :
The concept of comparative advantage suggests that countries benefit from specializing in the production of goods for which they have a lower opportunity cost and then trading these goods. This specialization and subsequent trade allow all involved parties to enjoy a greater quantity and variety of goods than they would in isolation. Protection of domestic industries is not related to the benefits derived from comparative advantage.
Learning Objectives
- Recognize the benefits of specialization and trading based on comparative advantage.
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