Question

Sort each statement as either true or false. Items (4 items) (Drag and drop into the appropriate area below) Comparative advantage is not an important aspect of specialization and trade.Trade helps to create additional growth through specialization.Everyone benefits with globalized trade.Voluntary trade among rational individuals creates value for everyone involved.

Answer 1

Sorting statements as either true or false:

True:

Trade helps to create additional growth through specialization.

Voluntary trade among rational individuals creates value for everyone involved.

False:

Comparative advantage is not an important aspect of specialization and trade.

Everyone benefits with globalized trade.

Step-by-step explanation:

It is not everyone who benefits with globalized trade. Those who benefit most are those countries that have developed some comparative and competitive advantages. Comparative advantage is the fulcrum of international trade. It ensures that countries engage in trade with others in order to export the goods in which they have some advantages over others.