Question

Explain the theory of foreign trade by Adam Smith.​

Answer 1

Answer:

The aim of Trade Theory is to explain the existing patterns of trade, the impact on the domestic economy, and the type of public policies that should be introduced to increase a country's well-being.

Explanation:

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Answer 2

Answer:

Adam Smith describes trade taking place as a result of countries having absolute advantage in production of particular goods, relative to each other.