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Nations specialize when they _____.

AHave few natural resources and are required to endure a trade deficit.
BExport more than they import.
CImport more than they export.
DProduce certain goods and services more efficiently than other nations.

Verified Answer :

sbcardinals
Dproduce certain goods and services more efficiently than other nations
palebadgworthy

The correct answer is D.

Specialization at the state level consists on dedicating the economic efforts and resources to the production of an specific product. There is a learning process attached to specialization, because it allows to achieve important productivy gains due to the broad experience acquired in that specific manufactuing process.

Such nation will end up gaining a competitive advantage, as it will be able to produce at a lower cost and therefore, be more efficiently than others.

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