What is a benefit of international trade?

International trade facilitates specialization in production, which is a significant benefit. When countries engage in trade, they can focus on producing goods and services in which they have a comparative advantage—meaning they can produce those goods more efficiently than others. This specialization enhances productivity levels as resources are allocated more effectively.

For instance, a country rich in natural resources may focus on extracting and exporting those resources while importing manufactured goods. By concentrating on what they do best, countries can produce more overall, thereby benefiting from higher levels of output and improved economic efficiency. This also leads to a wider variety of goods and services available in the global market, contributing to consumer choice.

The other options do not illustrate benefits of international trade. Encouraging monopolies can stifle competition and innovation, while limiting competition goes against the fundamental principles of free trade. Reducing surplus of raw materials could also be a negative impact if economies fail to manage their resources effectively. Specialization through international trade, however, leads to more efficient production and overall economic growth, making it the correct answer.