Question

According to adam smith, would mutually beneficial trade be possible? defend your answer.
b. according to david ricardo, would mutually beneficial trade be possible? defend your answer.

Answer 1

Adam Smith and David Hume were the founding fathers of anti-mercantilist thought. A number of scholars found important flaws with mercantilism long before Adam Smith developed an ideology that could fully replace it.

4. Adam smith “wealth of nations” was an attack on merchantilism.

5. •laissez-faire capitalism •Division of labour •Invisible hand Absolute advantage theory was derived from this book “wealth of nations”

6.  Adam Smith's Absolute Advantage Theory says that one country would have an absolute advantage over the other if it can produce same amount of goods with fewer resources. This is then the ability of a company or a country to produce more goods than its competitors using same or less resources. The principle was described by Adam Smith in the context of international trade.