Specialization through comparative advantage and free trade enhances global production possibilities.
If nations specialize, then they must rely on each other. They will sell the goods in which they specialize and purchase other goods from other nations. Comparative advantage plays a critical role in determining specialization, where countries focus on producing goods they are relatively more efficient at producing. Free trade encourages specialization and enhances global production possibilities by allowing nations to benefit from each other's strengths.
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