How does international trade lead to specialization?
A. Countries become more dependent on each other for buying and selling manufactured goods.
B. Labor can be outsourced cheaply to other countries, which brings down production costs.
C. Countries can make the best use of resources by buying what they don't have from other nations.
D. Industries begin to compete to offer the best prices and increase demand.
Answer (2)
International trade encourages specialization by allowing countries to focus on goods they produce most efficiently while importing what they need. This leads to better resource allocation, economic efficiency, and increased competition among industries. The chosen option is C: Countries can make the best use of resources by buying what they don't have from other nations.
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International trade promotes specialization by allowing countries to focus on producing goods where they have a competitive advantage. This leads to efficient resource use and lower production costs, while also spurring competition on a global scale. As a result, nations benefit by trading what they excel in for products they do not produce effectively. ;
