Adam Smith claimed that:

Question

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Adam Smith advocated for a laissez-faire approach to trade in which market forces, rather than government controls, determined the direction, volume, and composition of international trade. This is reflected in his famous concept of comparative advantage, which argues that nations should specialize in producing the goods and services they excel at and trade with other nations to obtain goods and services they do not produce as efficiently. Option A is incorrect because it contradicts Smith's position on free trade. Option B is true, but it only partially captures Smith's broader view on the role of markets in determining trade patterns. Option D is not relevant to Smith's ideas about international trade.

Adam Smith Claimed That