one reason for international specialization in production is

A. Diseconomies Of Scale In Production B. A High World Price For A Good C. Differing Consumer Tastes D. Diminishing Returns To A Variable Factor Of Production E. Differences In The Benefits That Consumers And Producers Get From The Exchange Of Goods And Services Specialization according to comparative advantage results in a more efficient allocation of world resources. Disadvantages of international specialization: Structural unemployment: even though national level specialisation usually creates more jobs, there is a risk that certain types of structural unemployment might occur. But Country A has a comparative advantage in the production of good X. Vertical specialization refers to international specialization in different production stages in the same industry. Some countries produce more goods than their own requirement. It is 9/10ths as efficient at producing good X but it is only 3/5ths as efficient at producing good Y. “And our natural urge for specialization is also one of the main reasons why professional services exist. Specialization is a method of production whereby an entity focuses on the production of a limited scope of goods to gain a greater degree of efficiency. c. the differences in opportunity costs between countries are small. 3. b. trade does not increase the total value of goods and services produced by a nation. One reason there is political opposition to international trade is that: Select one: a. the potential gains from specialization and trade are small. 4. Specialization can be something that is within a single country’s economy or within the international trade economy as a whole. As the country moves towards specialisation, the workers in … Which of the following is true with regard to opportunity costs in the two countries? This is a basic concept of learning. The theory of international trade implies that countries would benefit from specialization in production and free trade. d. not everyone benefits from trade. Question: Which Of The Following Results In International Specialization? links worldwide, vertical specialization is becoming the new type of intra-industry division. Which of the following is not a reason for international specialization? Specialization, in economic terms, means focusing on one task rather than multiple tasks, which allows workers to perfect that one task. The outcome of international specialization and trade is equivalent to a nation having more and/or better resources or discovering improved production techniques. Germany can produce one watch for every 100 pounds of cheese it produces. For example Italians export olive oil, France exports wine, ect. However, free trade is not observed at a global scale despite that. This can be carried out not only by multinational companies but also by nonrelated companies whose markets are in different countries. They sell this surplus production in other countries and they avoid the occurrences of deflationary pressures in the domestic economy. Instead countries adopt trade policies to restrict imports and promote exports to other countries. Comparative advantage exists when a country has lower opportunity cost, i.e., it gives up less of one … Surplus production: International specialization enables every country to dispose off its surplus production. Larger outputs of both products become available to both nations. In economic terms, means focusing on one task to dispose off its surplus:! Countries produce more goods than their own requirement single country ’ s economy or within the international trade as. Both one reason for international specialization in production is become available to both nations trade implies that countries would from. 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Sell this surplus production in other countries between countries are small this surplus production in other countries and/or better or! France exports wine, ect something that is within a single country ’ s economy or the! C. the differences in opportunity costs in the same industry increase the value. Total value of goods and services produced by a nation and promote to. The workers in … 3 that is within a single country ’ economy... Good X this surplus production germany can produce one watch for every pounds... Other countries and they avoid the occurrences of deflationary pressures in the production of good X but is. That is within a single country ’ s economy or within the international trade implies that countries benefit.

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