How does international trade lead to specialization?
A. Countries become more dependent on each other for buying and selling manufactured goods.
B. Labor can be outsourced cheaply to other countries, which brings down production costs.
C. Countries can make the best use of resources by buying what they don't have from other nations.
D. Industries begin to compete to offer the best prices and increase demand.
Answer (1)
International trade promotes specialization by allowing countries to focus on the production of goods where they have a comparative advantage. This leads to greater efficiency and resource allocation. Additionally, outsourcing labor and developing dependent economic relationships further enhance this specialization process. ;
