What is the first advantage of specialisation and trade? Complete the statement below.The Theory of Comparative Advantage says that specialisation and trade leads to an increase in global    which will increase living

Complete the statement below.The benefits of specialisation and trade are based on    assumptions. If there are increased production costs, trade barriers or    costs then output may decrease.

_______ holds that there are advantages to trade because different countries can produce different goods more efficiently than others.

The theory of comparative advantage demonstrates that even if a country is less efficient than another in producing all goods, it can still benefit from trade by specializing in the production of the good in which it has:  A. The highest absolute advantage  B. The lowest opportunity cost  C. The highest total production  D. The lowest absolute cost

The theory of comparative advantage suggests that countries should specialize in producing goods or services in which they have:Question 45Answera.Lower opportunity costsb.Higher opportunity costsc.Equal opportunity costsd.No opportunity costs

A second disadvantage of specialisation and trade is that it may lead to    on imports and exports. One country that is now attempting to diversify their economy is   .