Explain how international specialisation and trade based on comparative advantage can yeild benefits......

Question

...for all countries.

Hi, This is my question, what would i need to write about to answer this question? (1250 words)

THANK YOU VERY MUCH

Answer 1

Comparative Advantage: When one country can produce a good at a lower opportunity cost than another country.

Therefore, when each country specialises in the good it can produce at a lower opportunity cost, trade allows countries to consume more than what was produced in the economy itself. Write about examples of trade that occurs between different countries, and how economies have benefited from trade.