Economics WAEC

International trade is necessary mainly because?

A. no country can live in economic isolation
B. different countries are endowed with the same nature; and man-made resources
C. some countries have comparative cost advantage in the production of certain commodities
D. the world demand for and supply of various categories of commodities is expanding very fast
E. countries want to build up their foreign exchange reserve

Correct Answer:

Option C – some countries have comparative cost advantage in the production of certain commodities

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