In the real world we don't observe countries completely specializing in the production of goods for which they have a comparative advantage.All of the following are reasons for this except
A)not all goods and services are traded internationally.
B)some countries have more resources than other countries.
C)tastes for many traded goods are different in many countries because of globalization.
D)production of most goods involves increasing opportunity costs.

Question

Quizplus · Accepted Answer

Countries having more resources than others is not a reason for lack of complete specialization; rather, it affects absolute advantage, not comparative advantage.

In the Real World We Don't Observe Countries Completely Specializing