Which of the following theories identifies specialization as a reason for international business?
A) theory of comparative advantage.
B) imperfect markets theory.
C) product cycle theory.
D) none of the above

Question

Quizplus · Accepted Answer

The theory of comparative advantage explains that specialization is a reason for international business. This theory suggests that countries should specialize in producing goods and services that they can produce efficiently and import goods and services that they cannot produce efficiently. This leads to international trade and helps countries to achieve economic growth and development.

Which of the Following Theories Identifies Specialization as a Reason