Which of the following describes the reason for international trade
Answer Details
The reason for international trade is comparative cost advantage. This means that different countries have different resources, skills, and technologies that give them a comparative advantage in producing certain goods or services. By specializing in the production of goods and services in which they have a comparative advantage, countries can trade with each other and achieve greater efficiency, lower costs, and higher output. In other words, countries can produce more of what they are good at and less of what they are not, and then trade the surplus with other countries to get what they need. This benefits all countries involved by increasing productivity, expanding markets, and fostering economic growth.