Which of the following describes the reason for international trade
Balance of payment
Comparative cost advantage
Absolute cost advantage
Balance of trade
Correct answer is B
Comparative advantage is an economic term that refers to an economy's ability to produce goods and services at a lower opportunity cost than that of trade partners. Countries mainly enter into international trade to buy goods and services that they would normally produce at a higher cost compared to buying it from another country that is producing it a relatively low cost