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.