Answer to Question #233630 in English for ABCD

Question

Explain how specialisation has led to an increase in trade globally

Answer 1

Among production methods is specialization in which a given entity is focused in production of specific amount of goods in order to be more efficient. For example, a lot of countries are specializing in production of goods which are only found in that given part of the world. They do trading whereby they exchange their goods with goods that they don’t have. Specialization is said to be the backbone of international trade since only very small number of countries have production capacity that can make them self-sustained countries. When a country’s economy specializes in production, it will gain international trade benefits. Thus, specialization is said to have promoted trade globally.