True or False: Specialization discourages trade because items are less expensive. (1 point) Responses True True False False
False
False.
Specialization actually encourages trade because it allows individuals, businesses, and countries to focus on producing the goods and services that they have a comparative advantage in. This means that they can produce those goods and services more efficiently and at a lower cost. When specialization occurs, it creates opportunities for trade because different regions or countries can specialize in producing certain goods and services and then exchange them with others who specialize in other areas. This allows for a more efficient allocation of resources and a greater variety of goods and services to be available to consumers at potentially lower prices.
False
Specialization actually encourages trade because it allows individuals, regions, or countries to focus on producing goods or services in which they have a comparative advantage. This leads to increased efficiency and lower costs, making these items more competitive in the global market. Therefore, specialization generally promotes trade rather than discouraging it.