One of those questions is a. B) higher trade restrictions imposed by a national government. Is it absolute advantage or comparative advantage that really matters? “The effects of specialization is such a broad concept that it touches upon almost everything in our daily life. Specialization according to comparative advantage results in a more efficient allocation of world resources. The Trans-Pacific Partnership (TPP) was negotiated between the United States and 11 other countries—all of which border the Pacific—and it aimed to enhanced trade and investment among the TPP partner countries. Specialization, along with the complementary concept of the division of labor, occurs when the innate inequalities of human productive output … d. Is it possible for specialization and trade to increase total output of traded goods? Learning Objectives. International specialization means that different countries of the world specialize in producing different goods. Specialization allows people to produce the best product or service. Learn that differences in autarky prices (terms of trade) coupled with the profit-seeking motive and the absence of transportation costs induce international trade. ... Why do business specialize? In this way, they can use capital and labour efficiently. And our natural urge for specialization is also one of the main reasons why professional services exist. c. How are the gains from trade shared among the parties to a trade? International trade - International trade - Simplified theory of comparative advantage: For clarity of exposition, the theory of comparative advantage is usually first outlined as though only two countries and only two commodities were involved, although the principles are by no means limited to such cases. Reduced dependence on your local market. The TPP included new trade … Specialization occurs in different industries for different reasons. It results in saving of money for the company because due to specialization company does not have to incur expenses on training because if worker is moved from one job to another then he or she needs to be trained for doing a task but in case of specialization since worker is not moving anywhere there is no need to train him or her. International trade is an activity of strategies importance in the development process of a developing economy. Businesses specialize in producing one type of good or service.  The countries involved were Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. Larger outputs of both products become available to both nations. Here are seven reasons for international trade: 1. One reason for international specialization is _____ A) a high world price for a good. D) the difference in resource endowments throughout the world. Society and businesses cannot know everything and therefore need specialists with practical experience to help and guide us.” b. What are most organisations broken into? 2.9 The Motivation for International Trade and Specialization. Trade policy C) diminishing returns to a variable factor of production. The outcome of international specialization and trade is equivalent to a nation having more and/or better resources or discovering improved production techniques. international trade also discussed. This is just one of the reasons AIU offers specialization tracks within the information technology degree program to help ensure the courses you take while completing your degree can help you prepare for the various challenges and possibilities of the job market. Do specialization and trade benefit more than one party to a trade? More efficient allocation of world resources d. is it possible for specialization is _____ a ) a high price... 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