Adam Smith recognized the benefits from trade based on ____, and David Ricardo recognized the benefits from trade based on ____.

Question

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Adam Smith introduced the concept of absolute advantage, which suggests that countries should produce goods they are most efficient at making and trade for others. David Ricardo expanded on this idea with the concept of comparative advantage, which suggests that countries benefit from trade even if they do not have an absolute advantage by specializing in the production of goods for which they have a lower opportunity cost.

Adam Smith Recognized the Benefits from Trade Based on ____