The conclusions of Adam Smith and David Ricardo on the gains from trade are no longer valid due to the increase of barriers to trade.

Question

Quizplus · Accepted Answer

Adam Smith and David Ricardo's conclusions on the gains from trade, emphasizing the benefits of specialization and comparative advantage, respectively, remain fundamentally valid. Despite the presence of trade barriers, the underlying economic principles supporting the benefits of trade still apply, as countries continue to experience gains from trading according to their comparative advantages.

The Conclusions of Adam Smith and David Ricardo on the Gains