The basic of international trade according to Ricardo is that
A)A country will export those commodities in which its comparative production costs are high or will import those commodities in which its comparative production costs are less
B)A country will import those commodities in which its comparative production cost are the same with other countries
C)A country will export those commodities in which its comparative production costs are less or will import those commodities in which its comparative production costs are high
D)A country will export those commodities in which its comparative production

Question

Quizplus · Accepted Answer

David Ricardo's theory of comparative advantage suggests that a country will export goods for which it has a lower opportunity cost of production relative to other countries, and import goods for which it has a higher opportunity cost of production. This allows for more efficient global allocation of resources.

The Basic of International Trade According to Ricardo Is That