According to the resource-based view, there are economic gains from international trade because some firms in one nation generate exports that are valuable, unique, and hard to imitate that firms from other nations find it beneficial to import. True or false?

Question

Business

Arjun Woodard

3 December, 12:57

According to the resource-based view, there are economic gains from international trade because some firms in one nation generate exports that are valuable, unique, and hard to imitate that firms from other nations find it beneficial to import. True or false?

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Allie Rowland · Answer 1

It is true that According to the resource-based view, there are economic gains from international trade because some firms in one nation generate exports that are valuable, unique, and hard to imitate that firms from other nations find it beneficial to import.

Explanation:

It is true that every country indeed excels in the production of one thing or the other as contrasted to other countries. So, when that particular product is internationally traded it gives rise to economic gains.

Whenever a unique product is being exported it increases the sales and profits. And the country which imports it get the benefit of reduced cost. As the importing country specializes in that product. so it can export at a cheaper cost as compared to other nations.