Home / Aptitude Tests / Economics / The major reason why...

The major reason why nations engage in international trad...

The major reason why nations engage in international trade is that

A.

It allows free movement of factors of production

B.

It makes possible the use of capital-intensive method of production

C.

Nations are substantially different in their endowments of economic resources

D.

It affords the trading nations the opportunity to earn high profit

Correct answer is C

No explanation has been provided for this answer.