Principles of Macroeconomics 7th Edition

Published by South-Western College
ISBN 10: 1-28516-591-8
ISBN 13: 978-1-28516-591-2

Chapter 3 - Interdependence and the Gains from Trade - Questions For Review - Page 59: 4

Answer

A nation will export products for which it has a comparative advantage because it costs them less to make it that many other countries and through trading it can acquire products that are outside of its production possibility frontier and the same can happen for its trading partners.

Work Step by Step

Understand the relationship of comparative advantage and how it makes everyone better off. Simply think about how trade makes everyone better off and how its possible through opportunity costs.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.