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How does specialization enable countries to trade with one another

Whitney Matthews

in Social studies

1 answer

1 answer

Caroline Campbell on April 16, 2018

The specialization focuses on the production of a limited scope of products and services with the goal of having high degrees of efficiency in production. Many countries specialize in the production of native goods and services, then exchange them for other goods and services to other countries. The specialization has a comparative advantage in the production of goods and services. Any company that specializes in the production can benefit from international trade. For example, when a country produces apples at a lower price than bananas, you can opt for to specialize in the production of apples for the trade of bananas.

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