Answer:
The correct answer is <em>D. </em><em>All of the above</em><em>.</em>
Explanation:
A country, a region or even an individual person, achieve a greater economic result if they carry out economic activities that have comparative advantages.
This happens because if everyone specializes in a particular activity, they will surely obtain greater efficiency and productivity in carrying out that activity than if they did many activities without specializing in any particular one. If this activity also has comparative advantages, the individual result is optimal.
On the other hand, trade allows the exchange of goods and services produced by different agents in the market for a price that presents a benefit to both the buyer and the seller.
If this mechanism is free and fluid, it allows to obtain in sum a global optimum for the sum of the economic agents that participate in the market.
Clarifications:
A. Each individual makes an individual contribution to the increase in local, regional and national productivity.
B. Through international trade this impacts the overall profits of the nation.
The more you take advantage of comparative advantages, the more a nation will be in a position to offer benefits to other nations that would like to buy their products or services and the greater capacity they will have to buy products and services from other countries specialized in their own comparative advantages and a situation in the That everyone wins.
C. There are many individuals or nations that think they can be self-sufficient and do everything on their own, but empirical evidence has shown time and again that this stance has resulted in economic stagnation as a result of not taking advantage of their own benefit. and mutual the mechanism described above.
Even if we think we can do everything better than others, human, material and time resources will always be limited and we will have to choose what resources to use, what projects to carry out, etc. in the limited time that each one has.
Specialization and competition always run the limits of productivity because they incorporate the mechanism of innovation. In other words, whoever is at a disadvantage with respect to another will strive to improve in order to compete and not be left out of the market. In short, innovation is what allows increasing individual productivity and impacting the overall growth of the economy. Those who at the beginning did everything better, at some point will be surpassed by those who specialize in certain activities and achieve greater efficiency.
