Question
Economics Question on International Economics
Which of the following is a theory that explains why countries specialize in producing and exporting goods and services in which they have a comparative advantage?
A
Comparative advantage theory
B
Absolute advantage theory
C
Heckscher-Ohlin theory
D
Both a) and c)
Answer
Both a) and c)
Explanation
Solution
The correct option is (D): Both a) and c)