Question

Why is it better for a country to specialise on something that has a greater opportunity cost than on something that has a lower opportunity cost?​

Answer 1

Answer:

International trade is the exchange of capital, goods, and services across international borders or territories. Trading-partners reap mutual gains when each nation specializes in goods for which it holds a comparative advantage and then engages in trade for other products. In other words, each nation should produce goods for which its domestic opportunity costs are lower than the domestic opportunity costs of other nations and exchange those goods for products that have higher domestic opportunity costs compared to other nations.

Explanation:

Countries benefit when they specialize in producing goods for which they have a comparative advantage and engage in trade for other goods.

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