How specialisation may help address the basic economic problem
Variety: Consumers have improved access to a greater variety of higher quality products, i.e. they have more and better choice both from their own economy and from the production of other countries
A bigger market: Specialisation and international trade increase the size of the market offering opportunities for economies of scale
Competition and lower prices: Increased competition for domestic producers acts as an incentive to minimise costs and innovate to remain competitive. Competition helps to keep prices down