Germany can produce one watch for every 100 pounds of cheese it produces. Question: Which Of The Following Results In International Specialization? Specialization, in economic terms, means focusing on one task rather than multiple tasks, which allows workers to perfect that one task. 4. As the country moves towards specialisation, the workers in … c. the differences in opportunity costs between countries are small. A. Diseconomies Of Scale In Production B. The outcome of international specialization and trade is equivalent to a nation having more and/or better resources or discovering improved production techniques. It is 9/10ths as efficient at producing good X but it is only 3/5ths as efficient at producing good Y. Larger outputs of both products become available to both nations. Which of the following is not a reason for international specialization? d. not everyone benefits from trade. However, free trade is not observed at a global scale despite that. But Country A has a comparative advantage in the production of good X. Which of the following is true with regard to opportunity costs in the two countries? Instead countries adopt trade policies to restrict imports and promote exports to other countries. Surplus production: International specialization enables every country to dispose off its surplus production. “And our natural urge for specialization is also one of the main reasons why professional services exist. links worldwide, vertical specialization is becoming the new type of intra-industry division. Vertical specialization refers to international specialization in different production stages in the same industry. Specialization can be something that is within a single country’s economy or within the international trade economy as a whole. This can be carried out not only by multinational companies but also by nonrelated companies whose markets are in different countries. 3. b. trade does not increase the total value of goods and services produced by a nation. The theory of international trade implies that countries would benefit from specialization in production and free trade. Some countries produce more goods than their own requirement. This is a basic concept of learning. For example Italians export olive oil, France exports wine, ect. Specialization according to comparative advantage results in a more efficient allocation of world resources. A High World Price For A Good C. Differing Consumer Tastes D. Diminishing Returns To A Variable Factor Of Production E. Differences In The Benefits That Consumers And Producers Get From The Exchange Of Goods And Services One reason there is political opposition to international trade is that: Select one: a. the potential gains from specialization and trade are small. Specialization is a method of production whereby an entity focuses on the production of a limited scope of goods to gain a greater degree of efficiency. Disadvantages of international specialization: Structural unemployment: even though national level specialisation usually creates more jobs, there is a risk that certain types of structural unemployment might occur. They sell this surplus production in other countries and they avoid the occurrences of deflationary pressures in the domestic economy. Comparative advantage exists when a country has lower opportunity cost, i.e., it gives up less of one … Adopt trade policies to restrict imports and promote exports to other countries adopt trade policies to restrict imports and exports... Only 3/5ths as efficient at producing good Y task rather than multiple tasks, which allows workers to that... To comparative advantage results in a more efficient allocation of world resources products become to... 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