According to Smith,countries should specialize in the production of goods for which they have an absolute advantage and then:

Question

Quizplus · Accepted Answer

Smith's theory of absolute advantage suggests that countries should specialize in producing goods in which they have an absolute advantage (meaning they can produce the good more efficiently than other countries) and then trade these goods with other countries. This allows each country to benefit from their strengths, and potentially access goods that they are not able to produce as efficiently themselves. Therefore, option B is the best choice - countries should trade these goods for the goods produced by other countries.

According to Smith,countries Should Specialize in the Production of Goods