Companies from the nation of Atlantis are more efficient in the production of certain types of apparel, while companies from the U.S. are more efficient in the production of certain types of computers. Which economic theory predicts that capital would move to Atlantis to be invested there in the apparel industry, and to the United States to be invested in its computer companies?
A) Brand loyalty
B) NAFTA
C) The free-trade doctrine
D) Collectivism

Question

Quizplus · Accepted Answer

The free-trade doctrine predicts that the best use of global resources and lower prices will occur if each country in such a situation focuses on producing what products it can produce more efficiently.

Companies from the Nation of Atlantis Are More Efficient in the Production