The concepts of comparative advantage,specialization,and trade form a compelling argument in favor of:
A)free trade.
B)protectionism.
C)self-sufficiency.
D)only exporting,never importing goods.

Question

Quizplus · Accepted Answer

Comparative advantage suggests that countries should specialize in producing and exporting goods and services they can produce at a lower opportunity cost compared to their trading partners. This allows for greater efficiency and productivity, ultimately leading to increased economic growth and prosperity. Free trade allows for this specialization and trade to occur without restrictions, leading to mutual benefits for all countries involved. Protectionism, on the other hand, restricts trade and can lead to inefficiencies and lower productivity. Self-sufficiency, while it may provide security, often leads to higher costs and lower quality goods. Only exporting and never importing goods is not a sustainable trade strategy as it would ultimately limit access to goods and services that a country may need or want.

The Concepts of Comparative Advantage,specialization,and Trade Form a Compelling Argument