Which of the following statements best illustrates how comparative advantage influences specialization?

A. The Brandt Line gives a visual representation of development. B. Developed nations are wealthier as a result of the successful production and trade of manufactured goods. C. Developing nations are poorer due to limited export incomes. D. The Brandt Line theory was developed by an American economist.

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Dozer

11 July, 22:16

Which of the following statements best illustrates how comparative advantage influences specialization?

A. The Brandt Line gives a visual representation of development. B. Developed nations are wealthier as a result of the successful production and trade of manufactured goods. C. Developing nations are poorer due to limited export incomes. D. The Brandt Line theory was developed by an American economist.

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Carl Vaughan · Answer 1

When we say comparative advantage, this refers to one country's advantage when they can produce a certain product at a lower opportunity cost. As this influences specialization, this can be illustrated by this: Developed nations are wealthier as a result of the successful production and trade of manufactured goods. The answer would be option B.