Why Is Trade an Important Source of Economic Progress

Why is trade an important source of economic progress?

A) It allows the trading partners to produce a larger joint output through specialization in the areas where they have a comparative advantage.
B) It allows the trading partners to produce a larger joint output as the result of greater realization of cost reductions that accompany the adoption of mass production methods.
C) It makes it possible to realize gains from the discovery and dissemination of innovative products and production processes.
D) All of the above are correct.

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