Trade among nations is ultimately based on
A)absolute advantage.
B)strategic advantage.
C)comparative advantage.
D)technical advantage.

Question

Quizplus · Accepted Answer

Trade among nations is ultimately based on comparative advantage, which means that a country specializes in producing goods or services in which it has a lower opportunity cost than other countries. This allows for more efficient production and trade between countries, leading to increased overall economic welfare. Absolute advantage refers to a country's ability to produce a good or service more efficiently than other countries, which may not necessarily result in trade. Strategic advantage and technical advantage are not commonly used terms in economics in the context of trade.

Trade Among Nations Is Ultimately Based on