What is the theory of political economy that believes that the purpose of trade is to reduce the cost and increase the range of products available to consumers?

Question

Quizplus · Accepted Answer

Liberalism believes in free trade and competition, and its theory of political economy is based on the idea that trade is beneficial because it allows consumers to have access to a wider range of products at a lower cost. This is achieved through the principles of comparative advantage, which suggests that countries should specialize in producing goods and services that they can produce at a lower opportunity cost than other countries, and then trade with other countries to obtain goods and services that they cannot produce as efficiently.

What Is the Theory of Political Economy That Believes That