In foreign trade, a country specializes in the production of a commodity in which it has?

Assessment: WAEC SSCE - Commerce - 1992 (Objective) Subject: Commerce

Question 1 Report

In foreign trade, a country specializes in the production of a commodity in which it has?
Answer Details
In foreign trade, a country specializes in the production of a commodity in which it has the greatest relative advantage. This means that a country produces and exports goods or services in which it has a comparative advantage over other countries, meaning it can produce these goods at a lower cost or with higher quality than other countries. By specializing in the production of such goods, a country can increase its efficiency and productivity, and thereby increase its economic output and income from foreign trade. Additionally, by importing goods that other countries have a comparative advantage in, a country can access a wider range of goods and services than it could produce domestically, further boosting its overall economic welfare.

Download The App On Google Playstore

Everything you need to excel in your exams

Green Bridge CBT Mobile App
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning