The theory of International trade is based on____________
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Correct Answer: Option B
Explanation:
International trade theory is strongly associated with the principle of comparative cost advantage. The principle explains that countries can benefit from specializing in goods they can produce relatively more efficiently and exchanging them for goods other countries produce at a lower relative cost.
International trade theory is strongly associated with the principle of comparative cost advantage. The principle explains that countries can benefit from specializing in goods they can produce relatively more efficiently and exchanging them for goods other countries produce at a lower relative cost.