How does international trade lead to specialization? A. Countries become more dependent on each other for buying and selling manufactured goods.
B. Labor can be outsourced cheaply to other countries, which brings down production costs.
C. Countries can make the best use of resources by buying what they don’t have from other nations.
D. Industries begin to compete to offer the best prices and increase demand.
The correct answer is C. Countries can make the best use of resources by buying what they don’t have from other nations.
Explanation: International trade allows countries to focus on producing goods and services where they have a comparative advantage—that means they can produce those goods more efficiently than others. By trading, countries can obtain resources or products they lack, leading to a more efficient use of resources and encouraging specialization in specific industries or sectors. This ultimately benefits all nations involved in trade.