🎴 Flashcard Mode
International Trade and Industrial Economics
Card1 / 15
Mastered0
Review0
QuestionClick to flip
Which theory states that countries should specialize in producing and exporting goods in which they have a comparative advantage?
AnswerClick to flip back
A
Comparative Advantage Theory
💡 Explanation:
The Comparative Advantage Theory, proposed by David Ricardo, suggests that countries should focus on producing and exporting goods in which they have a lower opportunity cost compared to other countries.