Question:

Trade can be beneficial to an economy because:?

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it results in a more efficient use of the combined resources of some of the trading countries, even though it reduces efficiency in others.

more goods and services can be obtained at lower opportunity cost.

it prevents specialization in those activities in which countries have a comparative advantage.

it prevents unemployment.

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2 ANSWERS


  1. The gains from trade to an economy are attributable to more goods and services being obtained at a lower opportunity cost.  Which can result in a more efficient use of resources.


  2. more goods and services can be obtained at lower opportunity cost.

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