At the individual level, specialization usually comes in the form of career or labor specialization. This is a simple explanation why most economists oppose trade barriers (such as tariffs or import quotas) on principle. Comparative and Absolute Advantage Question: Specialization And Trade Should Lead To All Of The Following EXCEPT: A Decrease In Total Economic Output. Specialization. specialization and trade. Individuals Learning Specific Skills And Earning A Salary. He didn't ask to be traded; in fact, you could say he was traded involuntarily. The more they … Consumption. Goods from foreign countries brought into a country for use or sale. 3. Last week, one of my favorite football players was traded to another team. Artificial barriers to trade (e.g., import tariffs). Specialization Leads to Economies of Scale . Exports. International trade and specialization most often lead to what an wider market scope and more competition. There are many examples in history that illustrate how specialization leads to trade between regions. Specialization can occur on both the microeconomic level and the macroeconomic levels. Higher Living Standards. Trade was an essential part of life for the Romans - the empire was worth a great deal and trade managed to bring in a lot of that money. When determining specialization, only comparative advantage matters. One type of question that comes up very often on tests relating to opportunity costs, specialization, and trade involves a hypothetical situation of two countries (or individuals) that can each produce two Specialization leads to higher levels of output. How Specialization Encourages Trade. The concept of comparative advantage suggests that as long as two countries (or individuals) have different opportunity costs for producing similar goods, they can profit from specialization and trade. Goods and services sold from one country to other countries. Imports. 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