___________________ theory states that a country can gain from engaging in trade even if it has an absolute advantage or disadvantage.
A)Constructive advantage
B)Comparative advantage
C)Concentric advantage
D)Supply and demand
E)Relative cost advantage

Question

Quizplus · Accepted Answer

Comparative advantage theory, proposed by David Ricardo, suggests that countries benefit from trade by specializing in producing goods for which they have a lower opportunity cost, regardless of whether they have an absolute advantage.

___________________ Theory States That a Country Can Gain from Engaging