The doctrine of comparative advantages says that there are gains from international trade?
تقابلی برتری کے نظریے کے مطابق بین الاقوامی تجارت سے فائدہ کب حاصل ہوتا ہے؟
- If countries specialize in the production of goods in which they are relatively more efficient
- If opportunity costs are the same in the countries involved
- Only if both comparative and absolute advantages are present in both countries
- None of these
Explanation
- The doctrine of comparative advantage explains gains from international trade.
- Proposed by David Ricardo, it states that countries should specialize in goods where they are relatively more efficient.
- Even if one country is better in all goods, trade is still beneficial.
- Specialization based on lower opportunity cost increases overall gains.
Last verified on 23-04-2026
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