Asked by Vonda Simpson on Jun 14, 2024

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The benefits to trading nations based on comparative advantage accrue from

A) specialization only.
B) specialization and trading.
C) trading only.
D) protection of domestic industries.

Comparative Advantage

A concept in economics that refers to a country's ability to produce goods and services at a lower opportunity cost than that of trade partners.

  • Recognize the benefits of specialization and trading based on comparative advantage.
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ZK
Zybrea KnightJun 21, 2024
Final Answer :
B
Explanation :
The concept of comparative advantage suggests that countries benefit from specializing in the production of goods for which they have a lower opportunity cost and then trading these goods. This specialization and subsequent trade allow all involved parties to enjoy a greater quantity and variety of goods than they would in isolation. Protection of domestic industries is not related to the benefits derived from comparative advantage.