Question

Because of their relatively small national economies, which of the following is most likely considered to be the most important factor for Belgiom korea and canada to take full advantage of specialization?a. dividios of labour
b. international trade
c. economies of scale
d. command economy

Answer 1

Answer:

which of the following is most likely considered to be the most important factor for Belgiom, Korea and Canada to take full advantage of specialization?

b. international trade

Explanation:

In general, an economy can be defined as a set of activities that lead to the production and consumption of goods and services that utilize limited resources. An economic system serves to meet the needs of the individual operating in that economy, whether it is production or consumption needs. There are many factors that determine how big or small an economy is, the factors include; culture, laws, history, population, geographical location and other factors that cause necessity. A big economy can be defined as an economy where the amount of economic activities including the production and consumption of goods is at a high level as compared to other economies. On the contrary, a small economy is one whose production, consumption and trading activities is at a relatively low level. We will consider small economies.

Small national economies are countries whose production and consumption levels on a national scale are relatively small. Examples of such countries include; Belgium, Korea and Canada. Since the necessity for production or consumption is not that big, the best factor for specialization is international trade. Small economies can boost their growth by specializing on international trade to increase their market shares in other countries.