The competitive theory of international trade is based on the ________.

Question

Quizplus · Accepted Answer

The competitive theory of international trade is based on the gains from trade, which refer to the benefits that countries can obtain by specializing in the production of goods and services that they can produce more efficiently and trading them with other countries. This theory suggests that countries should specialize in the production of goods and services in which they have a comparative advantage, which will enable them to increase their efficiency and productivity and generate higher levels of economic growth and welfare for their citizens.

The Competitive Theory of International Trade Is Based on the ________