as nations learn to specialize in production, they will trade with other nations when what happens?\na they…

as nations learn to specialize in production, they will trade with other nations when what happens?\na they have absolute advantage in trade.\nb they have comparative advantage in trade.\nc they will not trade with another country.\nd when they lose their advantage in that area of trade.\ne when tariffs are imposed on foreign goods.

as nations learn to specialize in production, they will trade with other nations when what happens?\na they have absolute advantage in trade.\nb they have comparative advantage in trade.\nc they will not trade with another country.\nd when they lose their advantage in that area of trade.\ne when tariffs are imposed on foreign goods.

Answer

Brief Explanations:

The principle of comparative - advantage drives international trade. Nations specialize in producing goods and services in which they have a comparative advantage (lower opportunity cost) and trade with others. Absolute advantage is not the main driver of trade. Option C is contrary to the concept of specialization and trade. Losing an advantage would likely reduce trade, and tariffs usually impede trade rather than encourage it.

Answer:

B. They have comparative advantage in trade.