Which theory states that a nation should produce and sell goods to other countries that it produces most efficiently,and buy goods produced more efficiently by other countries?
A)Comparative advantage.
B)Absolute advantage.
C)Mercantilism.
D)Bilateral advantage.

Question

Quizplus · Accepted Answer

Comparative advantage suggests that a country should specialize in producing and exporting goods and services that it can produce efficiently and import goods and services that it cannot produce efficiently. It states that countries should focus on their relative strengths and trade with each other to achieve mutual benefits. This theory was first introduced by economist David Ricardo in 1817.

Which Theory States That a Nation Should Produce and Sell