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Nations specialize in production and engage in international trade in order to Multiple Choice protect domestic consumers and producers. increase consumption and income. improve transportation. increase employment.

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Martebi

A lot of nations often produce different types of goods. Nations specialize in production and engage in international trade in order to increase output and income.

  • There are several reasons why nations specialize and engage in trade.  The obvious reason is the principle of comparative advantage.

This principle states that each country should focus in the products that it can produce most steadily and cheaply and trade those products for goods that foreign countries can produce most readily and cheaply.

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