Question

specialization and trade can have both costs and benefits. read each claim and determine whether it shows a cost or benefit of international trade.
countries with fewer resources wont be able to trade as much as resource - rich nations.
cheaper goods from abroad may cause domestic companies to go out of business.
competition between countries can lead to more affordable goods.
trade connects countries, which leads to the exchange of ideas and innovation.

Explanation:

• "Countries with fewer resources won't be able to trade as much as resource - rich nations": This is a cost. It highlights an inequality in the trading capacity based on resource availability, which can limit the economic opportunities of resource - poor countries.
• "Cheaper goods from abroad may cause domestic companies to go out of business": This is a cost. It shows a negative impact on domestic producers due to international trade.
• "Competition between countries can lead to more affordable goods": This is a benefit. It indicates that consumers can access goods at lower prices as a result of international competition.
• "Trade connects countries, which leads to the exchange of ideas and innovation": This is a benefit. It emphasizes the positive non - economic (in terms of knowledge and innovation) aspect of international trade.

Answer:

• "Countries with fewer resources won't be able to trade as much as resource - rich nations": Cost
• "Cheaper goods from abroad may cause domestic companies to go out of business": Cost
• "Competition between countries can lead to more affordable goods": Benefit
• "Trade connects countries, which leads to the exchange of ideas and innovation": Benefit