Question

Which of the following is NOT a positive affects of a nation comparative advantage on international trade?

A) supports the efficient use of resources

B) allows a nation to specialize in the production of certain goods and services

C) enables the nation to profit from the production of goods and services

D) eliminates the need for trade with other nations

Answer 1

Answer: D) eliminates the need for trade with other nations

Step-by-step explanation:

Having comparative advantage on the production of a good or service means that a country can produce that good or service cheaper and be able to exchange it for other goods and services that other countries are offering.

International trade is therefore very important to countries acting on comparative advantage because the country will not produce all that it needs but rather what it is good at producing. This means that trade with other countries is still needed to provide those goods that they need but find it expensive to produce.