One Advantage of the Specialization That Results from International Trade

question 17

Multiple Choice

One advantage of the specialization that results from international trade is that countries can take advantage of

• A)smaller countries.
• B)production diversification
• C)scale economies.
• D)taste reversals.
• E)lower transport costs.

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Definitions:

Favorable labor policies

Laws or regulations that provide advantages or benefits to labor, such as protection of workers' rights, enhancement of working conditions, and promotion of fair wages and benefits.

Communist and socialist unions

Labor organizations that operate based on communist or socialist principles, advocating for the collective ownership of the means of production and equal distribution of wealth.

Collective bargaining

A process where employers and representatives of employees negotiate wages, working conditions, and other terms of employment.

Legitimizes capitalism

The process or argument by which capitalism is defended or justified as the preferable economic system, often in relation to its ability to promote economic growth and freedom.