According to international trade theory, a country should:

Question

Quizplus · Accepted Answer

According to international trade theory, a country should specialize in the production of the good in which they have a comparative advantage. This means that they should focus on producing the goods that they can produce more efficiently and trade with other countries for goods that they cannot produce efficiently. This will lead to greater efficiency, productivity, and ultimately, economic growth. Importing goods in which a country has an absolute advantage or specializing in the production of goods in which they have an absolute disadvantage is not recommended as it will not result in the most efficient use of resources or optimal trade. Exporting goods in which a country has a comparative disadvantage is also not recommended as it will not be cost-effective for the country to produce those goods.

According to International Trade Theory, a Country Should