A Country Specializes in the Production of a Good in Which

Multiple Choice

A country specializes in the production of a good in which it has comparative advantage.What happens once international trade is established?

A) All domestic households win.
B) All foreign households win.
C) Some households win, some households lose, but overall the losses outweigh the gains.
D) Some households win, some households lose, but overall the gains outweigh the losses.