Question

When two countries trade with one another, it is most likely because A. the wealthy people in each of the two countries are able to benefit, through trade, by taking advantage of other people who are poor. B. some people involved in the trade do not understand that one of the two countries will become worse-off because of the trade. C. the opportunity costs of producing various goods are identical for the two countries. D. the two countries wish to take advantage of the principle of comparative advantage.

Answer 1

D. the two countries wish to take advantage of the principle of comparative advantage.

Step-by-step explanation:

This is true because, when the comparative advantage that exist between two countries in production process is high, it leads to business trade relation. For example, country A has the comparative advantage of producing milk more than country B while country B has the advantage of producing egg than country A. Because both countries needs what the other produces, it would lead to trade between them.