Question

Which of these international trade concepts results in specialization and trade increases in total world output? A: Absolute Advantage, B: Balance of Payments, C: Comparative Advantage, D: International Tarrifs

Answer 1

C: Comparative Advantage,

Step-by-step explanation:

Comparative advantage is a financial term that alludes to an economy's capacity to create products and services at a lower opportunity cost than that of trading countries. A comparative advantage enables an organization to sell merchandise and ventures at a lower cost than its rivals and acknowledge more grounded sales margins.e.g selling in mass, which lessens the taking care of time and costs included.

The law or standard of comparative advantage holds that under free trade, a specialist will create a greater amount of and consume less of a good for which they have a comparative advantage. Comparative advantage is the monetary reality portraying the work gains from exchange for people, firms, or countries, which emerge from contrasts in their factor enrichment or innovative advancement.