The theory that states that each country should specialize in producing specific products that will improve its trade with other states is known as __________ advantage.
A) complete
B) mercantilist
C) comparative
D) competitive

Question

Quizplus · Accepted Answer

The theory that explains a country's trade based on comparative advantage is known as 'Comparative Advantage'. It suggests that the countries should specialize in producing those goods that they can produce more efficiently, thereby improving their trade relations with other countries.

The Theory That States That Each Country Should Specialize in Producing