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Ostrovityanka [42]
3 years ago
14

The practice of a country producing what they can produce the most efficiently based on their natural resources, etc. and tradin

g with other countries for the rest of what they need is known as _________________________.
Social Studies
1 answer:
zhuklara [117]3 years ago
4 0

<u>Answer: </u>

The practice of a country producing what they can produce the most efficiently based on their natural resources, etc. and trading with other countries for the rest of what they need is known as comparative advantage trading.

<u>Explanation: </u>

  • If a specific raw material is available in abundance within the domestic boundaries of a country, the country can make use of it to achieve a comparative advantage over the other countries for the same raw material being absent in other countries.
  • Moreover, if the climate of a country favors the growth of a specific agricultural product, the country can perform comparative advantage trading with the countries that are unable to produce the same product in their country.
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