David Ricardo's theory of comparative advantage attempts to rationalize why some countries export automobiles,consumer electronics,and machine tools,while other countries export chemicals,watches,and jewelry.This rationalization is best explained in terms of:

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Much of the observed pattern of international trade,like why Switzerland exports chemicals,pharmaceuticals,watches,and jewelry and why Bangladesh exports garments,is difficult to explain.David Ricardo's theory of comparative advantage offers an explanation in terms of international differences in labor productivity.

David Ricardo's Theory of Comparative Advantage Attempts to Rationalize Why