Which trade theory holds that nations can increase their economic well-being by specializing in the production of goods they produce more efficiently than anyone else?
A. The factor endowment theory.
B. The theory of absolute advantage.
C. The theory of comparative advantage.
D. The international product life cycle theory.
Answer:B
Which trade theory holds that nations can increase their economic well-being by specializing in the production of goods they produce more efficiently than anyone else?
A. The factor endowment theory. B. The theory of absolute advantage. C. The theory of comparative advantage. D. The international product life cycle theory.