Which trade theory suggests that trade is a positive-sum game in which all participating countries fetch economic gains?
A) Heckscher-Ohlin theory
B) mercantilism
C) comparative advantage
D) Leontief's paradox
E) Samuelson critique

Question

Quizplus · Accepted Answer

The theory of comparative advantage, developed by David Ricardo, suggests that trade is a positive-sum game where all participating countries can benefit economically by specializing in the production of goods for which they have a comparative advantage and trading them.

Which Trade Theory Suggests That Trade Is a Positive-Sum Game