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

Question

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

Quizplus · Accepted Answer

Comparative advantage theory is a classical theory of international trade first proposed by David Ricardo in 1817. It suggests that countries should specialize in the production of goods and services that they can produce at a lower opportunity cost and trade with other countries for goods that they cannot produce as efficiently. The other options listed are modern or contemporary theories of international trade.

Which of the Following Is a Classical Theory of International