Asked by
Calvin Harvey
on Oct 12, 2024
Verified
International trade
A) benefits consumers but harms producers.
B) can only take place if a nation has a special natural endowment for the production of a good.
C) will occur if a nation has a comparative advantage in the production of a good.
D) represents trade between two governments.
Comparative Advantage
The ability of an entity to produce a good or service at a lower opportunity cost than others, leading to specialized trade benefits.
Special Natural Endowment
Unique natural resources or advantages that a country or region possesses, which can provide a competitive edge in certain industries or sectors.
- Acquire knowledge about the core principles and rewards of international trade.
- Familiarize yourself with the notations of absolute and comparative advantage and their application in worldwide trade.
Verified Answer
AR
Learning Objectives
- Acquire knowledge about the core principles and rewards of international trade.
- Familiarize yourself with the notations of absolute and comparative advantage and their application in worldwide trade.