Question

Trade can make everybody better off because it a. increases cooperation among nations. b. allows people to specialize according to comparative advantage. c. requires some workers in an economy to be retrained. d. reduces competition among domestic companies.

Answer 1

Answer:

b. allows people to specialize according to comparative advantage.

Explanation:

A trade can be defined as the process that typically involves the buying and selling of goods and services between a buyer (consumer) and a seller (producer).

Trade can make everybody better off because it allows people to specialize according to comparative advantage.

This ultimately implies that, trade creates an enabling environment that suits a specific service provider or producer of a particular product.