Question

Select all that apply

How do nations benefit from international trade?
Multiple select question.
A. They can improve their self-sufficiency.
B. They can acquire more goods and services.
C. They can specialize their production.
D. They can enhance their resource productivity.

Answer 1

International trade benefits nations by improving self-sufficiency, increasing access to goods and services, enabling specialization, and enhancing resource productivity.

Step-by-step explanation:

International trade provides several benefits for nations:

1. Improved self-sufficiency: Nations can acquire goods and services that they cannot produce domestically, thus improving their self-sufficiency.
2. Increased access to goods and services: Through international trade, nations can acquire more goods and services that are not available domestically.
3. Specialization of production: Nations can specialize in the production of goods and services where they have a comparative advantage, leading to increased efficiency and productivity.
4. Enhanced resource productivity: By engaging in international trade, nations can benefit from economies of scale, which allows for increased resource productivity.