Countries participate in foreign trade because?

Sagot :

Countries participate in foreign trade because it does not have the comparative advantage in the production of all goods.

What is comparative advantage?

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries. For example, some countries do not have crude oil, so it would have to import from countries that produce crude oil. It would be more efficient for these countries to import crude oil.

To learn more about comparative advantage, please check: https://brainly.com/question/10606157