Question

How does international trade lead to specialization?

A. Countries become more dependent on each other for buying and selling manufactured goods.

B. Labor can be outsourced cheaply to other countries, which brings down production costs.

C. Countries can make the best use of resources by buying what they don’t have from other nations

D. Industries begin to compete to offer the best prices and increase demand.

Answer 1

International trade leads to specialization by allowing c.. countries to make the best use of their resources, reducing production costs through outsourcing, and fostering interdependence between nations.

Step-by-step explanation:

International trade leads to specialization through several mechanisms. Firstly, countries can make the best use of their resources by buying what they don't have from other nations. This allows each country to focus on producing goods and services that they are relatively better at, resulting in increased efficiency and productivity. Secondly, labor can be outsourced to other countries where it is cheaper. This reduces production costs and allows industries to specialize in certain activities. Lastly, international trade fosters interdependence between countries, as they become more dependent on each other for buying and selling goods, leading to specialization.