Because countries cannot produce all of the goods/services that it needs, they must
options:
Reduce the need for imports
Specialize and trade on a global scale
Eliminate consumption of scarce goods.
Increase domestic production costs
Specialize and trade on a global scale.
This is the most common approach taken by countries to address their inability to produce all the goods and services they need. By specializing in the production of certain goods or services in which they have a comparative advantage, countries can trade with other nations to acquire the goods and services they lack. This enables them to access a wider range of products and services, enhancing their overall welfare and economic growth.