The fundamental force that drives international trade is A. comparative advantage. B. absolute advantage. C. cheap labour in countries like China and India. D. a country's desire to increase its trade surplus. E. unemployment of factors of production.
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Comparative advantage: This refers to the ability of a country to produce a good or service at a lower opportunity cost compared to other countries. It means that a country can specialize in producing goods or services in which it has a comparative advantage and Show more…
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