The correct option is <u>limiting the types of goods and services produced.
</u>
When discussing comparative and absolute advantage,<u> limiting the types of goods and services produced</u> describes the best specialization.
Further Explanation:
Comparative absolute advantage:
In-comparative advantage, a country is making any product, and comparatively at less cost than the other country. The country should make that specific product in which they can make the product cheaper than other countries. If a country had a specialization in making a product then they will make than product and this is the comparative advantage to them.
Absolute advantage:
The absolute advantage refers to in which it allows a country to produce or make those products in which they are efficient and effective of making the specific products.
The country is efficient and effective in making a specific product. It will lead to less manpower, less cost, and less time is required than any other country. The country will be more sufficient in making that product.
Justification for the correct and incorrect answer:
(A)
Developing expertise in certain types of production: This option is incorrect.
The absolute and comparative theories are about making of products efficiently, and effectively. If one country is specialized and effective in making a specific product, then that country should make that product to reduce the cost of production, time, and labour.
(B)
Limiting the types of goods and services produced: This option is correct.
The absolute and comparative theories are about making of products efficiently, and effectively. If one country is sufficient and effective in making a specific product, then that country should make that product to reduce the cost of production, time, and labour. Basically to limit the different types of goods and services produced, and focusing on making a specific specialized product by dividing the distribution of production in such a way, if one country is efficient in making a specific product, that country will make that specific product and then they will export that product, and can import other products, in which other countries are efficient in making of the product.
(C)
Targeting specific consumers and retailers: This option is incorrect.
The absolute and comparative theories are about making of products efficiently, and effectively. If one country is sufficient and effective in making a specific product, then that country should make that product to reduce the cost of production, time, and labour.
(D)
Producing certain items for specific market segments: This option is incorrect.
The absolute and comparative theories are about making of products efficiently, and effectively. If one country is sufficient and effective in making a specific product, then that country should make that product to reduce the cost of production, time, and labour.
Learn More:
1. Goods production
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2. GDP and Taxes
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3. Market intermediary
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Answer Details:
Grade: High school
Chapter: Theories of international trade
Subject: Business studies
Keywords:
When discussing comparative and absolute advantage, which best describes specialization, developing expertise in certain types of production limiting the types of goods and services produced targeting specific consumers and retailers producing certain items for specific market segments.
