Asked by
Durrell Harley
on Dec 08, 2024Verified
The case for free trade is based on the
A) theory of balanced growth.
B) theory of absolute advantage.
C) argument for a diversified economy.
D) theory of comparative advantage.
Free Trade
International trade left to its natural course without tariffs, quotas, or other restrictions.
Absolute Advantage
The ability of an individual, company, or country to produce a good or service at a lower cost per unit than the cost at which any other entity can produce the same good or service.
Comparative Advantage
The endowment of a person, enterprise, or nation to output a good or service at a diminished opportunity cost relative to rival entities.
- Understand the positions in favor and against the concepts of free trade and protectionism.
Verified Answer
HA
Learning Objectives
- Understand the positions in favor and against the concepts of free trade and protectionism.