Asked by len
Look at the diagram. Then answer the questions that follow.
Resize Columns
Question 6.
What BEST completes step II in the diagram?
Countries nationalize their most profitable domestic industries.
Countries impose barriers to trade to increase domestic production.
Countries specialize in goods they produce more efficiently than other countries.
Countries adopt common currencies with neighboring countries to increase trade.
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Answer: Countries specialize in goods they produce more efficiently than other countries.
Reason: Specialization (based on comparative advantage) is the logical step that leads to increased international trade and mutual gains—countries focus on what they can produce relatively more efficiently and then trade for other goods. The other options describe protectionism (barriers), nationalization (reducing trade/foreign investment), or a specific policy (common currency) that are not the general step shown in the typical trade/specialization diagram.
Reason: Specialization (based on comparative advantage) is the logical step that leads to increased international trade and mutual gains—countries focus on what they can produce relatively more efficiently and then trade for other goods. The other options describe protectionism (barriers), nationalization (reducing trade/foreign investment), or a specific policy (common currency) that are not the general step shown in the typical trade/specialization diagram.
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