Although the theory of comparative advantage explains trade in manufactured goods, it has no explanatory value for trade in business services.

Question

Quizplus · Accepted Answer

The theory of comparative advantage applies to trade in services, including business services, as well as goods. It suggests that countries or entities will specialize in and export services in which they have a comparative advantage, leading to more efficient global resource allocation and benefits for all trading partners.

Although the Theory of Comparative Advantage Explains Trade in Manufactured