Question

What is one advantage that the system illustrated below gives to countries that are involved in the global economy? A. It permits developing nations to compete on an equal economic basis with more industrialized countries. B. It allows countries to specialize in the products and services best suited to their individual economic strengths. C. It permits countries with economies based on agriculture to continue selling goods that have a low margin of profit. D. It allows countries with greater production capabilities to gain an economic advantage over less-developed nations.

Answer 1

The type of economy that referred in the question would most likely be a free-enterprise economy. By definition, a free-enterprise economy is an economic system wherein the market is free of government intervention. In addition, it is essential to the world trade because "permits developing nations to compete on an equal economic basis with more industrialised countries."