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Question
- how does comparative advantage affect international trade? it enables countries to consume beyond their production possibilities curve it reduces global production it limits trade between nations it eliminates the need for trade
Comparative - advantage allows countries to specialize in producing goods and services with lower opportunity - cost. Through trade based on comparative advantage, countries can access a greater variety and quantity of goods than they could produce on their own, effectively consuming beyond their production possibilities curve. It does not reduce global production (as specialization can increase efficiency), does not limit trade (it promotes trade), and does not eliminate the need for trade (it is the basis for beneficial trade).
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It enables countries to consume beyond their production possibilities curve