Question

ECONOMICS
How does comparative advantage affect trade between countries?
O A. By limiting trade between countries that have a different comparative advantage B. By creating trade deficits in countries that have the greatest comparative advantage C. By encouraging countries to import foreign goods that they can't produce efficiently D. By forcing countries to trade with partners that have the same comparative advantage​

Answer 1

Answer: C. By encouraging countries to import foreign goods that they can't produce efficiently.

Explanation: Correct answer on A pex.

Answer 2

Comparative advantage affects trade between countries by encouraging countries to import foreign goods that they can't produce efficiently. Therefore, (C) is the correct option.

What is a Comparative advantage?

The ability of an economy or a nation to produce a particular commodity or service at an effective price or with a lower opportunity cost is known as a comparative advantage.

As a result, it encourages nations to import commodities from other nations that are manufacturing them more cheaply.

Therefore, (C) is the correct option.

To know more about comparative advantage, visit the link below:

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