Classical Theory of International Trade:
The classical economist like Adam Smith and David Ricardo developed a theory of international trade called the classical theory of international trade.
Adam smith analyzed the causes for and the benefits of international trade in terms of absolute cost advantage, and David Ricardo analyzed the causes for and the benefits of international trade in terms of comparative cost advantage. So, Adam smiths analyses of the theory of international is called theory of absolute cost advantage, and David Ricardo’s analysis of the theory of international trade is called the theory of comparative cost advantage.
Adam Smith’s theory of Absolute Cost Advantage
Latest posts by BMS Team (see all)
- Meterdown Annual Festival is back with its 7th edition – Starts today! - January 16, 2020
- Tybms sem 6 results 2019 declared on 19th June 2019 - June 19, 2019
- TYBMS Sem 6 Results 2019 Update from BMS khabri! - June 15, 2019