The comparative advantage comes if each trading partners has a product that will bring a better price in another country than it will at home. Which economist proposed the principle of comparative advantage ?
Correct answer: B. David Ricardo
- A. Adam Smith
- B. David Ricardo
- C. David Smith
- D. Adam Ricardo
Explanation
David Ricardo proposed comparative advantage, showing that countries can gain from trade by specialising according to their relative opportunity costs. Adam Smith is associated with absolute advantage instead.
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