Explain the Ricardian Theory Of International Trade
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Answer:
Ricardian trade theory. David Ricardo developed this international trade theory based in comparative advantage and specialization, two concepts that broke with mercantilism that until then was the ruling economic doctrine. Because of this advantage, both countries would benefit from international trade
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Explanation:
Answer:
Ricardo (1817) suggested that countries specializing in the production of the commodities in which they have a comparative advantage, can achieve higher standards of consumption and living by trading these goods with other countries. Indeed, international trade has been rising steadily over the past decades.
The Ricardian theory of trade focuses on the comparative advantage of the nation. ... The Ricardian theory is based on differences in technology across nations. A nation is said to have a comparative advantage is a good if it can produce relatively more efficiently or relatively less efficiency compared to other nation.
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