Adam Smith's trade theories form the basis of mercantilist economic philosophy.

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Adam Smith is known as the father of modern economics and his trade theories are actually in opposition to mercantilism. Mercantilism emphasizes maximizing exports and minimizing imports to increase a nation's wealth and power, while Smith's theory of comparative advantage explains how nations can benefit from trading with each other by specializing in the production of goods they can produce at a lower opportunity cost.

Adam Smith's Trade Theories Form the Basis of Mercantilist Economic