As Adam Smith put it so eloquently in the Wealth of Nations,"If a foreign country can supply us with a commodity cheaper than we ourselves can make it,...
A)...it is only right that we should learn their method of production,so that we too can master the commodity..."
B)...then we would be well-served to include them in our supply chain..."
C)...better buy it from them with some part of our own industry..."
D)...we should barter with them or take it by force if they prove to be unreasonable..."

Question

Quizplus · Accepted Answer

Adam Smith's quote implies that if a foreign country can supply a commodity cheaper than a domestic producer, it is economically advantageous for the domestic producer to buy it from the foreign country rather than producing it themselves. This leads to a mutually beneficial trade relationship between the two countries, enhancing each other's wealth and prosperity. Therefore, the correct option is C: better buy it from them with some part of our own industry.

As Adam Smith Put It So Eloquently in the Wealth