Asked by kevin Sullivan on May 30, 2024
Verified
The main advantage of ________ is the ability to move out beyond previous resource and production constraints.
A) absolute advantage
B) trade barriers
C) trade between two countries
D) export subsidies
Resource Constraints
Limitations on the availability of resources, which can restrict output, growth, and efficiency.
Trade Between Two Countries
The exchange of goods and services across international borders between two nations, facilitating access to foreign markets and resources.
- Clarify the mechanism by which countries achieve consumption levels beyond their production potential through specialization and trade.
- Depict the advantages of free trade and the function of exchange rates in enabling it.
Verified Answer
ZK
Zybrea KnightJun 04, 2024
Final Answer :
C
Explanation :
The main advantage of trade between two countries is that it allows both countries to move beyond their own resource and production constraints by specializing in the production of goods for which they have a comparative advantage and trading them for other goods. This enables countries to consume more than they would be able to produce on their own.
Learning Objectives
- Clarify the mechanism by which countries achieve consumption levels beyond their production potential through specialization and trade.
- Depict the advantages of free trade and the function of exchange rates in enabling it.
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