The notion that every country has a comparative advantage in something is an example of to
A)quota theory.
B)the infant industry argument.
C)international trade theory
D)less developed countries cannot trade successfully with developed countries.

Question

Quizplus · Accepted Answer

The notion of comparative advantage is a foundational concept in international trade theory. It suggests that countries should specialize in the production of goods and services in which they have a comparative advantage, meaning they can produce them at a lower opportunity cost than other countries. This leads to mutual gains from trade and global economic growth. The other options, quota theory, infant industry argument, and the idea that less developed countries cannot trade successfully with developed countries, are all separate arguments or concepts within the broader field of international trade.

The Notion That Every Country Has a Comparative Advantage in Something