3
AssignmentMultiple Select

International Trade

Question 3 • IL-Economics

Why do countries specialize? Check all that apply.

Answer
A
to produce more of certain goods and services in a more efficient way
B
to trade with one another for goods or services they cannot provide on their own
C
to remain independent without having to rely on others for goods or services
D
to produce more goods and services, and to contribute to greater global prosperity

Explanation

Countries specialize by focusing on goods and services they can produce relatively efficiently, which can increase output. They can then trade for goods or services they do not produce themselves. This exchange can make more goods and services available and contribute to greater global prosperity; specialization does not make countries independent of one another.

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