Which of the following assumptions are present in the classical theories of international trade?
A) Different produces have different product life cycles
B) Transportation costs should underpin foreign trade
C) Resource mobility is not easy to achieve
D) No complications in foreign exchange transactions

Question

Which of the following assumptions are present in the classical theories of international trade? 
A) Different produces have different product life cycles 
B) Transportation costs should underpin foreign trade 
C) Resource mobility is not easy to achieve 
D) No complications in foreign exchange transactions

Quizplus · Accepted Answer

Classical theories of international trade, such as the Ricardian model, assume no complications in foreign exchange transactions, focusing on comparative advantage without considering currency issues.

Which of the Following Assumptions Are Present in the Classical