The basic theory of comparative advantage can explain all types of international trade.

Name: The basic theory of comparative advantage can explain all types of international trade.
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Question

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The theory of comparative advantage explains the benefit of trade by focusing on the relative efficiency of producing goods between countries, but it does not account for all factors influencing international trade, such as product differentiation, economies of scale, and government policies.

The Basic Theory of Comparative Advantage Can Explain All Types