Companies from the nation of Atlantis are more efficient in the production of certain types of apparel,while U.S.companies are more efficient in the production of certain types of computers.Which economic theory predicts that the production of these types of apparel would shift to Atlantis,and the production of these types of computers would shift to the U.S.?
A)GATT
B)NAFTA
C)The free-trade doctrine
D)Collectivism
E)Invisible hand theory

Question

Quizplus · Accepted Answer

The free-trade doctrine states that if each country specializes in the production of the goods and services that it can produce most efficiently,this will make the best use of global resources.

Companies from the Nation of Atlantis Are More Efficient in the Production