In terms of explaining why some countries export automobiles,consumer electronics,and machine tools,while other countries export chemicals,watches,and jewellery,David Ricardo's theory of comparative advantage offer an explanation in terms of
A) international differences in intellectual capital.
B) international differences in labour productivity.
C) the interplay between the proportions in which the factors of production (such as land, labour, and capital) are available in different countries and the proportions in which they are needed for producing particular goods.
D) the cultural histories of the exporting nations.
E) the geographic location of potential trading partners.
Correct Answer:
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