Question

Nations usually specialize in industries where they have a
comparative advantage.
quaternary sector.
secondary sector.
primary objective.

Answer 1

The key idea is comparative advantage — nations specialize in industries where they can produce goods or services relatively more efficiently than other countries. That doesn’t mean they all concentrate in one sector.

- Comparative advantage (correct principle) — can occur in any sector.
- Quaternary sector (knowledge/IT/research) — some countries specialize here (e.g., U.S., India’s IT services).
- Secondary sector (manufacturing) — many countries specialize here (e.g., Germany in autos).
- “Primary objective” is not a sector and is not the right answer.

So: nations specialize where they have a comparative advantage, which may be in the primary, secondary, tertiary or quaternary sector depending on resources, skills, and technology.