Countries engage in international trade because they benefit from doing so. .................. Thus, trade plays a vital role in achieving such an essential task since it frees each country's residents from having to consume goods in the same combination in which the domestic economy can produce them. If the US specialized its production but did not engage in international trade, US residents would have large quantities of wheat and soybean but no coffee or bananas.
A) Any country that attempted to achieve self-sufficiency by producing everything consumed would face a difficult task.
B) We can easily see the benefits from trade along with productive specialization at the benefits from trade along with productive specialization at the individual level.
C) The gains from trade arise because it allows countries to specialize their production by allocating recources to their most productive uses
D) The fact that political boundaries divide the world into nation-states does not alter trade's potential for expanding output.
E) In market-oriented economies, existing firms make most consumption decisions besides controlling production patterns
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