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How does specialization lead to economic growth regarding international trade?

User Mmackh
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Answer:

Specialization refers to the concentration of an individual or a country's production on a narrow range of goods or services. When a country specializes in producing a certain product or service, it can produce it at a lower cost due to economies of scale, technological advancements, and the availability of natural resources.

Through international trade, countries can exchange goods and services they specialize in with other countries that specialize in producing different goods and services. This exchange increases economic efficiency, as it allows countries to obtain products they cannot produce efficiently at a lower cost. In this way, specialization leads to international trade, which leads to economic growth by increasing productivity, increasing the standard of living, and expanding markets for goods and services.

User TreeTree
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