We see quite a bit of international trade in the real world. And trade is driven by specialization. So why don't we see full specialization-for instance, all cars ion the world being made in South Korea, or all mobile phones in the world being made in China?

Choose the best answer from the following choices:

a. More efficient allocation of resources

b. A higher level of material well being

c. Gains from specialization

d. Promoting competition

e. Deterring monopoly

f. Reducing the threat of war

Question

Ansley Weaver

Business

20 December, 14:15

We see quite a bit of international trade in the real world. And trade is driven by specialization. So why don't we see full specialization-for instance, all cars ion the world being made in South Korea, or all mobile phones in the world being made in China?

Choose the best answer from the following choices:

a. More efficient allocation of resources

b. A higher level of material well being

c. Gains from specialization

d. Promoting competition

e. Deterring monopoly

f. Reducing the threat of war

+5

Answers (1)

Know the Answer?

Jeremy Hopkins · Answer 1

e. Deterring monopoly

Explanation:

Based on the information provided within the question it can be said that the best choice would be that it is deterring monopoly. Monopolies refer to having full control of an industry and being the the only supplier or producer of a certain good. This is always bad because monopoly's are able to set whatever price they want on their products because there is no competition to steal away customers.