Asked by Karmel Abdeljalil on Jun 20, 2024

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With respect to international trade,specialization means that

A) each country consumes what it produces.
B) labor is exported or imported in much the same way as other products.
C) most goods and services that are traded internationally are produced in only 1 or 2 nations.
D) each country consumes a small fraction of what it produces.
E) labor and other resources in a nation are used to produce the products and services for which they are best suited.

Specialization

The process of concentrating on and becoming expert in a particular subject or skill.

International Trade

The exchange of goods and services between countries, allowing for increased efficiency and market expansion.

Labor

The work and time for which employees are paid.

  • Acquire an understanding of the concepts of specialization and comparative advantage in international commerce.
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CT
Caleb TumblesonJun 22, 2024
Final Answer :
E
Explanation :
Specialization means that different countries or regions focus on producing the goods and services that they have a comparative advantage in, based on their available resources and technology. This allows for more efficient production, greater output, and lower costs, which can benefit all the trading partners involved. Therefore, labor and other resources in a nation are used to produce the products and services for which they are best suited, leading to more specialization and trade. Option A, D, and C are incorrect because they do not accurately define specialization in international trade. Option B is partially correct since labor can be traded internationally, but it is not the same as other products because it involves human beings with unique skills and preferences.