Which of the following theories identifies specialization as a reason for international business?
A) Theory of comparative advantage
B) Imperfect markets theory
C) Product cycle theory
D) None of the above

Question

Quizplus · Accepted Answer

The theory of comparative advantage suggests that countries should specialize in producing goods where they have a lower opportunity cost, leading to increased efficiency and international trade.

Which of the Following Theories Identifies Specialization as a Reason