true or false specialization discourages trade because items are less expensive
False. Specialization encourages trade because it allows for increased efficiency and higher productivity, leading to lower costs and higher quality goods. As a result, countries that specialize in certain products can trade with other countries for goods that they do not produce, leading to mutual benefits and overall economic growth.
False. Specialization actually encourages trade because it allows for more efficient production and lower costs, which results in the availability of goods at lower prices. When countries specialize in producing goods that they have a comparative advantage in, they can trade those goods with other countries to obtain goods or services that they may not be as efficient in producing themselves. This leads to a more efficient allocation of resources and increased overall economic welfare for all countries involved in trade.
False. Specialization actually encourages trade because it allows countries to produce goods and services in which they have a comparative advantage, leading to increased efficiency and lower costs.
When countries specialize in producing specific goods or services, they can exploit their unique resources, skills, or technologies to produce those goods more efficiently than other countries. This leads to lower production costs and higher productivity.
As a result, specialized countries can produce goods at a lower price and higher quality than other countries. This creates an incentive for trade between countries, as each can benefit from obtaining goods that they are specialized in producing at a lower cost than if they were to produce it domestically.
Overall, specialization encourages trade by promoting efficiency, allowing countries to focus on what they do best, and benefiting from the comparative advantage of other countries in producing different goods and services.