The first theory of international trade emerged in England in the mid-16^th century.Referred to as the theory of comparative advantage,its principle assertion was that gold and silver were the mainstays of national wealth and essential to vigorous commerce.

Question

Quizplus · Accepted Answer

The statement provides incorrect information. The theory of comparative advantage did emerge in England during the same time period, but its principle assertion was that countries should specialize in producing goods where they have a lower opportunity cost and trade with other countries for goods where they have a higher opportunity cost, regardless of whether those goods were gold or silver.

The First Theory of International Trade Emerged in England in the Mid-16th

The First Theory of International Trade Emerged in England in the Mid-16^th