When looking at the definition of the 'international division of labor,' which term best relates to it?

Understanding the Concept

The "international division of labor" refers to the way tasks are distributed across different countries, where each nation specializes in specific economic activities in order to increase efficiency and productivity. This concept is closely linked to globalization, trade, and economics.

Related Terms

1. Specialization: This term implies that countries focus on producing certain goods or services in which they have a comparative advantage. This allows for more efficient production and trade between nations.

2. Globalization: This broader term encompasses the international economic interdependence that emerges when countries engage in trade and investment, facilitating the international division of labor.

3. Comparative Advantage: This economic principle states that countries should produce goods where they have a lower opportunity cost, thus benefiting from trade.

Conclusion

Among these terms, Specialization is the term that best relates to the "international division of labor," as it encapsulates the idea of countries focusing on specific economic activities to optimize production and enhance trade efficiency.