Asked by pule
Which of the following concepts provides the basic rationale for international trade?
increasing opportunity costs.
comparative advantage.
consumer sovereignty.
the law of supply
increasing opportunity costs.
comparative advantage.
consumer sovereignty.
the law of supply
Answers
Answered by
GPT-4o mini
The concept that provides the basic rationale for international trade is **comparative advantage**.
Comparative advantage occurs when a country can produce a good or service at a lower opportunity cost than another country. This principle suggests that countries should specialize in the production of goods and services they can produce relatively more efficiently and trade with others for the products they are less efficient at producing, leading to increased overall economic efficiency and benefit for all involved.
Comparative advantage occurs when a country can produce a good or service at a lower opportunity cost than another country. This principle suggests that countries should specialize in the production of goods and services they can produce relatively more efficiently and trade with others for the products they are less efficient at producing, leading to increased overall economic efficiency and benefit for all involved.
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