Comparative advantage in international trade:

A) is used only by large countries.
B) is used to determine whether trade will be beneficial to both countries involved.
C) provides benefits to developed countries only.
D) does not determine what goods countries should produce.

Question

Kenzie Edwards · Accepted Answer

Final Answer : B, Explanation :  Comparative advantage is used to determine whether trade will be beneficial to both countries involved, as it allows countries to specialize in the production of goods and services in which they have a lower opportunity cost, leading to increased efficiency and productivity in both countries involved in the trade. It is not limited to large or developed countries, and it does not dictate what goods countries should produce.

Comparative advantage in international trade:

A) is used only by large countries.
B) is used to determine whether trade will be beneficial to both countries involved.
C) provides benefits to developed countries only.
D) does not determine what goods countries should produce.

Definitions

Learning Objectives

Learning Objectives

Related questions

Comparative advantage in international trade:A) is used only by large countries.B) is used to determine whether trade will be beneficial to both countries involved.C) provides benefits to developed countries only.D) does not determine what goods countries should produce.

Definitions

Learning Objectives

Learning Objectives

Related questions

Comparative advantage in international trade:

A) is used only by large countries.
B) is used to determine whether trade will be beneficial to both countries involved.
C) provides benefits to developed countries only.
D) does not determine what goods countries should produce.