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Lyrx [107]
3 years ago
10

How does international trade lead to specialization?

History
2 answers:
Harman [31]3 years ago
8 0

Countries can make the best use of resources by buying what they don’t have from other nations

Lady bird [3.3K]3 years ago
6 0

The correct answer is D) Industries begin to compete to offer the best prices and increased demand.

<em>International trade leads to specialization because industries begin to compete to offer the best prices and increased demand. </em>

In modern globalization economy, many countries are linked by international trade. Our clothes could be from Chine, the Bananas from the Dominican Republic, our mobile phones from Korea, and the wine from France. That is why international trade leads to specialization because industries begin to compete to offer the best prices and increased demand. Many companies can offer similar products and services, and for a Company to succeed in a global market, it has to design a specific solution, create a special difference or unique selling proposition. This specialization generates new opportunities to participate in the market.


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