Specialization. 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. Question: Specialization And Trade Should Lead To All Of The Following EXCEPT: A Decrease In Total Economic Output. The Exchange Of Goods And Services In Markets. A reduction in these costs would increase the incentive for specialization, thereby increasing both trade and total wealth. Consumption. At the individual level, specialization usually comes in the form of career or labor specialization. Imports. Exports. Specialization Leads to Economies of Scale . Goods and services sold from one country to other countries. Specialization and Exchange Without Trade Rope Fish Tom 12 40 Wilson 810 With Trade Rope Fish 15 44 13 12 ... Usually leads to efficient outcome Comparative and Absolute Advantage Artificial barriers to trade (e.g., import tariffs). Rome’s population was one million and this amount required many different things which were brought back through trading. Higher Living Standards. When determining specialization, only comparative advantage matters. Voluntary Trade. There are many examples in history that illustrate how specialization leads to trade between regions. specialization and trade. 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. 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 Last week, one of my favorite football players was traded to another team. Specialization can occur on both the microeconomic level and the macroeconomic levels. 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