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Because countries have different natural, human, and capital resources and different ways of combining these resources, they are not equally efficient at producing the goods and services that their residents demand. The decision to produce any good or service has an opportunity cost, which is the amount of another good or service that might otherwise have been produced. Given a choice of producing one good or another, it is more efficient to produce the good with the lower opportunity cost, using the increased production of that good to trade for the good with the higher opportunity cost.
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What causes a country to specialize in certain products?
They specialize in certain goods because they have the resources to make a lot of that product.
How do nations obtain goods and services for which they lack adequate resources?
by trading with other nations to get what they need.
What is tHe ability of countries to sPecialize in the production of certain goods is limited by the existence of what?
trade barriers :)
In order for a country to specialize in production?
Countries specialize in producing certain goods for many reasons, but the most common is the condition of the soil and climate.
What promotes international trade?
Lets understand trade first.Trade is defined as exchange of goods and services for a price or for another set of goods and services.When such exchange takes place within the boundary of a nation is called domestic trade.When it takes place accross national boundary,it is called intenational trade.International trade is necessitated by inability of a nation to produce certain specified goods and services of its requirement.In such a situation,requirement is fulfilled by importing such goods and services from producing countries.This way, international trade takes place. International trade is also caused by disparities among nations in technological advancement.Technologically advanced nations keep on helping underadvanced nations by their technology.Sale and purchase of goods, services and technology takes place between nations in international trade.
Why do countries specialize in certain goods?
Countries specialize in producing certain goods for many reasons, but the most common is the condition of the soil and climate.
What causes a country to specialize in certain products?
They specialize in certain goods because they have the resources to make a lot of that product.
How do nations obtain goods and services for which they lack adequate resources?
by trading with other nations to get what they need.
What is tHe ability of countries to sPecialize in the production of certain goods is limited by the existence of what?
trade barriers :)
In order for a country to specialize in production?
Countries specialize in producing certain goods for many reasons, but the most common is the condition of the soil and climate.
What promotes international trade?
Lets understand trade first.Trade is defined as exchange of goods and services for a price or for another set of goods and services.When such exchange takes place within the boundary of a nation is called domestic trade.When it takes place accross national boundary,it is called intenational trade.International trade is necessitated by inability of a nation to produce certain specified goods and services of its requirement.In such a situation,requirement is fulfilled by importing such goods and services from producing countries.This way, international trade takes place. International trade is also caused by disparities among nations in technological advancement.Technologically advanced nations keep on helping underadvanced nations by their technology.Sale and purchase of goods, services and technology takes place between nations in international trade.
How do nations benefit from producing goods and services they have a comparative advantage in supplying?
They benefit by using the money they earn to buy goods and services they cannot produce as efficiently.
Is Adam smith in favor of free trade?
Yes, Adam Smith is known for advocating free trade in his seminal work "The Wealth of Nations." He believed that free trade allows nations to specialize in producing goods and services where they have a comparative advantage, leading to overall economic growth and prosperity.
How does the nations government choose which public goods and services to produce?
The nation's government choose which public goods and services to produce because its a command market which allow the government to make all the choices.
What does it mean for a country to specialize in the production of goods and services?
this means that it is their main source of income and that they have a lot of it
How are people in Mexico city goods and services connected?
Road and for certain items, railroad.
Which social science often includes a study of how a certain group of people manufacture goods or spends its money?
sociology
