One advantage of the specialization that results from international trade is that countries can take advantage of
A) scale economies.
B) production diversification
C) smaller countries.
D) taste reversals.
E) lower transport costs.

Question

Quizplus · Accepted Answer

Specialization allows for countries to focus on producing goods and services that they have a comparative advantage in, which often leads to higher levels of production and greater efficiency. This increased production can result in scale economies, or cost savings due to increased production.

One Advantage of the Specialization That Results from International Trade