False. Specialization actually encourages trade because it allows each party to focus on producing the goods or services they are most efficient at. This leads to increased productivity and lower costs, which in turn makes trading more beneficial for all parties involved. Specialization promotes efficient allocation of resources and encourages countries to specialize in the production of goods or services in which they have a comparative advantage, leading to increased gains from trade.
False. Specialization encourages trade because it allows individuals, businesses, and countries to focus on producing goods or services that they have a comparative advantage in. This leads to increased efficiency and productivity, which can lower the overall cost of goods and services and make them more affordable. Additionally, specialization encourages specialization in different industries, which leads to a wider variety of products being available for trade. Therefore, specialization generally promotes trade rather than discouraging it.
