Which of the following is a classical theory?
A) Product life cycle
B) National competitive advantage
C) Strategic trade
D) Absolute advantage

Question

Quizplus · Accepted Answer

Absolute advantage is a classical theory in economics developed by Adam Smith in his book "The Wealth of Nations." It states that a nation should produce and export goods that it can produce more efficiently (using fewer resources) than other nations and import goods that other nations can produce more efficiently. Absolute advantage is a classical theory that was first introduced by Adam Smith in his book "The Wealth of Nations". It states that a country should specialize in producing goods and services for which it has an absolute advantage in production, i.e. it can produce those goods or services at a lower cost than any other country.

Which of the Following Is a Classical Theory