David Ricardo's theory of comparative advantage has the following policy implication:
A) Liberalization of international trade will enhance the welfare of the world's citizens
B) International trade is a zero-sum game
C) One country will benefit from trade at the expense of another country
D) Restriction of international trade will enhance the welfare of the world's citizens

Question

Quizplus · Accepted Answer

David Ricardo's theory of comparative advantage argues that countries should specialize in producing the goods and services that they can produce most efficiently, and then trade with other countries for goods and services that they cannot produce as efficiently. This implies that liberalization of international trade will enhance the welfare of the world's citizens, as it allows for greater specialization and improved efficiency in global production.

David Ricardo's Theory of Comparative Advantage Has the Following Policy