Question

Which of the following best explains a trading relationship between two countries based on comparative advantage?

A- One country exports raw materials and the other country exports manufactured goods, resulting in a global economic balance.

B- One country implements tariffs on goods that are imported from another country because the importing country will benefit from profits on the sale of the goods.

C- Each country specializes in the type of good for which it has the lowest opportunity cost, resulting in a higher global output of both types of goods.

D- Two countries trade in luxury items, but the volume of trade is limited by the highest cost of long-distance trade.

E- Each country exports the same type of good because the countries are similar in terms of natural resources and labor costs.

Answer 1

The answer is C

Step-by-step explanation:

I don't know why but that was the answer