The basis for international trade isA) self-sufficiency.B) specialization.C) amassing national wealth at the expense of trading partners.D) maximizing your exports and minimizing your imports.

Question

Patrick Lafleur · Accepted Answer

Final Answer : B, Explanation :  The basis for international trade is specialization, meaning that countries focus on producing what they are most efficient at producing and then trade with other countries to obtain goods they are less efficient at producing. This leads to increased efficiency and economic growth for all countries involved. Self-sufficiency (choice A) is not a viable option for most countries as it limits their ability to access goods and services they cannot produce themselves. Amassing national wealth at the expense of trading partners (choice C) is not sustainable in the long term and can lead to trade wars and economic instability. Maximizing exports and minimizing imports (choice D) can be beneficial for one country in the short term, but it does not take into account the mutual benefits of trade and can lead to imbalances in the global economy.

The basis for international trade is

A) self-sufficiency.
B) specialization.
C) amassing national wealth at the expense of trading partners.
D) maximizing your exports and minimizing your imports.

Definitions

Learning Objectives

Learning Objectives

Related questions