This theory,advanced by the 19^th-century English economist David Ricardo,forms the intellectual basis of the modern argument for unrestricted free trade.

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The theory described in the question is comparative advantage, which was advanced by David Ricardo in the 19th century and argues that countries should specialize in producing goods and services in which they are relatively more efficient, and then trade with other countries to get the goods and services they need. This theory serves as the basis for the modern argument for unrestricted free trade. The Heckscher-Ohlin theory emphasizes the role of factor endowments in determining trade patterns, while mercantilism emphasizes the accumulation of gold and trade surpluses as the goal of trade policy. Absolute advantage, another theory advanced by Ricardo, argues that countries should specialize in producing goods and services in which they are absolutely more efficient.

This Theory,advanced by the 19th-Century English Economist David Ricardo,forms the Intellectual

This Theory,advanced by the 19^th-Century English Economist David Ricardo,forms the Intellectual