Countries engaged in international trade specialize in production based on

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Ace Small

Business

6 March, 02:15

Countries engaged in international trade specialize in production based on

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Answers (1)

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Talia Haas · Answer 1

Comparative advantage.

Explanation:

Comparative advantage is the advantage a country posses when it can produce a good or service at lower cost compared to other countries.

Countries export goods and services they have comparative advantage producing and import goods and services where they do not have comparative advantage.

This leads to a win-win situation where countries maximise use of their resources in production that is easy for them.