What is specialization, as it relates to trade and economics?
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10 points
When a country focus on a single product for their economic export.
When a country chooses many things to make for their economic export.
When a country has to import everything from another country.
Specialization, as it relates to trade and economics, refers to the concept of a country or individual focusing on producing specific goods or services in which they have a comparative advantage. This means that they can produce these goods or services more efficiently or at a lower opportunity cost compared to other countries or individuals.
Specializing in a particular product or service allows a country to maximize its resources, increase productivity, and achieve economies of scale. This leads to increased efficiency, lower costs, and higher quality output. It enables countries to produce goods or services at a lower opportunity cost and thus gain a competitive advantage in the global market.
Therefore, the correct answer to your question would be:
- When a country focuses on a single product for their economic export.