Specialization makes trade necessary because it allows individuals and countries to focus on producing goods and services in which they have a comparative advantage, leading to greater efficiency and higher productivity. When producers specialize, they can create more of a specific good or service than they would if they tried to produce everything themselves. This creates a surplus, which can then be traded for other goods and services that are more efficiently produced by others. As a result, trade enables access to a wider variety of products and improves overall economic welfare.
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