Which of the following concepts provides the basic rationale for international trade?

Question

increasing opportunity costs.

comparative advantage.

consumer sovereignty.

the law of supply.

Answer 1

The concept that provides the basic rationale for international trade is comparative advantage. This principle suggests that countries can benefit from trade by specializing in the production of goods and services they can produce most efficiently, and trading for those they produce less efficiently, leading to increased overall economic efficiency and mutual benefit.