The trade theory does not explain the pattern of specialization
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Explanation:
Above statement is incorrect rather is one of the objectibe of the theory to explain the pattern of specialization. It tells us the quantity and type of product a country produces. For example India produces jewellery, garments and other products, Japan produce cars, Mobiles phones, Tv's etc and India is not Producing the technological products as Japan Produce. In this way India is specializes in their own products and vice versa. If you are using the Ricardian theory then you come to conclusion that Japan would not produce garments,gems and jewellery.
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