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vodomira [7]
3 years ago
6

Classify each statement as true or false by dragging it into the corresponding category.

Business
1 answer:
Nuetrik [128]3 years ago
4 0
<h2>The following is the classification of the given statements under the categories of true and false:</h2>
  • When two countries choose to participate in international trade, it is a mutually beneficial activity for both countries - is a TRUE statement as one country gets cheap goods and the other gets profit and valuable foreign currency.

  • Through specialization and trade, it is possible for a country to consume a combination of goods that is beyond its original production possibilities frontier - is a TRUE statement as import facilities make it possible to have goods from any part of the world.

  • Wealthier countries always benefit more from international trade than poorer countries do - is a FALSE statement as the benefit depends on the profitability of the trade.

  • Countries trade for goods in which they do not have a comparative advantage, and therefore, would never trade with nations that have similar resource endowments - is a FALSE statement as countries actually choose to trade in commodities that dispense comparative advantage so as to gain more profits.
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