Question

Countries gain from specializing in producing goods in which they have a(n) __________ advantage and trading for goods in which other countries have a(n) __________ advantage.

Answer 1

Answer:

Countries gain from specializing in producing goods in which they have a comparative advantage and trading for goods in which other countries have a comparative advantage.

Explanation:

In international trade, countries are involved in the export and import of goods and services. Export can be defined as the activity of transporting goods and services from one's own country to a foreign country for sale, while import is defined as the activity of bringing goods into one's own country from a foreign country for purchase. There are many strategies that can be used to determine which goods and services to export and which ones to import. One strategy that is often used is comparative advantage.

Comparative advantage can be defined as a state where a country can produce specific goods and services at a lower opportunity cost as compared to other trading partners. From the definition, we can deduce that  the cost of opportunity is what drives whether a country will produce a good or service for export or whether they will import it from another country. if a country has a comparative advantage over the production of specific goods and services, they are most likely to export that good or service, however, if the trading partner has comparative advantage, chances are that they will import that good or service.

Answer 2

Countries gain from specializing in producing goods in which they have a(n) comparative advantage and trading for goods in which other countries have a(n) comparative advantage.

A country has comparative advantage in the production of a good if it produces at a lower opportunity cost when compared with other countries. A country should specialise in the production of the good for which it has a comparative advantage.

For example, if Country A has an opportunity cost of 2 in the production of jeans and Country B has an opportunity cost of 10 in the production of Jean, Country A has a comparative advantage in the production of Jeans and should specialise in its production.

A similar question was answered here: https://brainly.com/question/13221821