1. Economic theory suggests countries benefit from international trade by producing more of those good and services for which they have a comparative advantage ( and less of that of which a country does not have a comparative advantage). However, countries rarely specialize completely. why?
2. Even with international trade, countries rarely specialize completely because:
A. consumers in different countries have homogeneous tastes.
B. some countries would lose as a result of free trade
C. production of most goods involves increasing opportunity costs.
D. all goods and services can be traded internationally.
E. some countries do not have an absolute advantage producing anything.