ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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There will always be a steady supply of goods on the market so trade is not needed.
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Countries can produce what they make best and trade with others for what they need.
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A country’s economy will never go through a difficult time if they specialize in a good.
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The competition between countries will not exist.
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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: -Many countries, for example, specialize in producing the goods and services that are native to their part of the world, and they trade them for other goods and services. This specialization is thus the basis of global trade, as few countries have enough production capacity to be completely self-sustaining.
Detailed explanation-3: -When nations specialize, this exchange creates gains from trade. The benefits of specialization include a larger quantity of goods and services that can be produced, improved productivity, production beyond a nation’s production possibility curve, and finally, resources that can be used more efficiently.