With more trade, countries can largely stop producing goods that are inefficient to produce and import them instead, allowing them to specialize more and reduce prices.

Question

Answer

Pro: Companies that can export will see an increase in their demand, which will help them to grow and benefit from economies of scale, allowing them to lower prices even more.

Answer

Con: Difficulties arise when a state attempts to transition to a more specialized industry, so these specializations are unlikely to happen.

Answer

Pro: Countries that can produce certain vegetables at low costs will likely allocate more resoures and workers to produce those vegetables, increasing the quantity they produce and lowering their prices.

Is more trade always beneficial for countries?

With more trade, countries can largely stop producing goods that are inefficient to produce and import them instead, allowing them to specialize more and reduce prices.

Pros

Cons

Companies that can export will see an increase in their demand, which will help them to grow and benefit from economies of scale, allowing them to lower prices even more.

Countries that can produce certain vegetables at low costs will likely allocate more resoures and workers to produce those vegetables, increasing the quantity they produce and lowering their prices.

Difficulties arise when a state attempts to transition to a more specialized industry, so these specializations are unlikely to happen.

Selected claim, supporting its parent

With more trade, countries can largely stop producing goods that are inefficient to produce and import them instead, allowing them to specialize more and reduce prices.

Pro claim 1

Companies that can export will see an increase in their demand, which will help them to grow and benefit from economies of scale, allowing them to lower prices even more.

Pro claim 2

Countries that can produce certain vegetables at low costs will likely allocate more resoures and workers to produce those vegetables, increasing the quantity they produce and lowering their prices.

Con claim 1, children below

Difficulties arise when a state attempts to transition to a more specialized industry, so these specializations are unlikely to happen.