Question

Specialization and producing goods at a comparative advantage

A)Makes countries independent
B)Makes countries environmentally friendly
C)Encourages trade between countries
D)Does nothing for a country

Answer 1

The correct answer is C. Specialization and producing goods at a comparative advantage encourages trade between countries.

Step-by-step explanation:

In terms of foreign trade, specialization implies that a country acquires a specific development in the production of a certain good or service, thus acquiring a comparative advantage with respect to other countries regarding the production of said good or service in particular. Thus, the situation occurs whereby a country develops to the maximum its production capacities with respect to a particular good, enhancing its technology and its performance and making said good attractive to other countries that thus became buyers of said good. Specialization and the development of comparative advantages in commercial matters encourages foreign trade as each country develops the capacity to produce specific goods and market them to the world.