Which of the following analyzes the basis for and gains from trade?
A)Balance of payments
B)Foreign exchange market
C)International trade policy
D)International trade theory

Question

Quizplus · Accepted Answer

International trade theory is the branch of economics that analyzes the basis for and gains from trade. It includes theories such as comparative advantage, factor endowment, and product cycle theory, which help to explain why countries engage in trade and the benefits they derive from it. The other options, balance of payments, foreign exchange market, and international trade policy are important aspects of international trade but do not specifically focus on analyzing the basis for and gains from trade.

Which of the Following Analyzes the Basis for and Gains