According to David Ricardo's principle of comparative advantage,

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Economics · International Trade

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Countries should specialize in the production of goods for which they have a lower opportunity cost than their trading partners.

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Answer 1

Countries with an absolute advantage in all goods should not engage in trade.

Answer 2

Countries should specialize in the production of goods for which they use fewer absolute resources than their trading partners.

Answer 3

Countries should specialize in the production of goods for which they have a lower opportunity cost than their trading partners.

Answer 4

Countries should specialize in the production of goods that they enjoy consuming.

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