The theory of comparative advantage provides strong rationale for supporting the idea of
A) business nationalism.
B) free trade.
C) protectionist trade policies.
D) governmental intervention in trade.

Question

Quizplus · Accepted Answer

The theory of comparative advantage suggests that trade is a positive-sum game in which all countries that participate realize economic gains. As such, this theory provides a strong rationale for encouraging free trade.

The Theory of Comparative Advantage Provides Strong Rationale for Supporting