ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Most countries only make one product really well.
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Specialization allows people to do a more efficient job at producing what they make best and trade for the things they need.
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Either A or B
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None of the above
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Detailed explanation-1: -Whenever countries have different opportunity costs in production they can benefit from specialization and trade. Benefits of specialization include greater economic efficiency, consumer benefits, and opportunities for growth for competitive sectors.
Detailed explanation-2: -Specialization Leads to Economies of Scale As labor is divided amongst workers, workers are able to focus on a few or even one task. The more they focus on one task, the more efficient they become at this task, which means that less time and less money is involved in producing a good.
Detailed explanation-3: -Occasionally, people who specialize in a field develop new techniques or new technologies that lead to huge increases in productivity. Increased specialization ultimately leads to higher standards of living for all those involved in economic exchanges.
Detailed explanation-4: -Specialization helps businesses maximize productivity. It involves using resources only to produce a single product, which increases the efficiency and effectiveness of the business. This increases profitability while helping minimize operational costs for businesses.