Question

The island country of Mauritius is small but has lowered its barriers for international trading partners. Its location in the Indian ocean is close to Madagascar and the African continent. Mauritius trades between countries close by, and larger countries such as India. How does Mauritius benefit from lowering its trading barriers?


1)


Workers and companies can now specialize in competitive areas because other goods and services are imported through international trade.


2)


Its economy produces all the goods and services the country requires and thus helps the local business grow.


3)


It maintains a very high standard of living because of the domestic dominance over other products and services.

Answer 1

Answer:

Workers and companies can now specialize in competitive areas because other goods and services are imported through international trade.

Explanation:

The countries trade through comparative advantage as they produce the goods in which they have a specialization in and exports them in exchange for goods in which they don't have a comparative advantage in.