Companies from the nation of Atlantis are more efficient in the production of certain types of apparel,while companies from the U.S.are more efficient in the production of certain types of computers.Which economic theory predicts that capital would move to Atlantis and be invested there to produce apparel,while capital from around the world would flow to the United States and be invested in its innovative computer software companies?
A) GATT
B) NAFTA
C) The free-trade doctrine
D) Collectivism
E) Individualism

Question

Quizplus · Accepted Answer

The free-trade doctrine predicts that the best use of global resources and lower prices will occur if each country in such a situation focuses on producing what products it can produce more efficiently.

Companies from the Nation of Atlantis Are More Efficient in the Production