What concept did Ricardo introduce in international trade?
"Comparative advantage"
"Absolute advantage"
"Competitive advantage"
"Dynamic advantage"
Answer
The concept of "comparative advantage," introduced by David Ricardo, revolutionized the field of international trade. It suggests that countries should focus on producing and exporting goods for which they have a relatively lower opportunity cost, even if it means importing other goods that they could potentially produce domestically at a lower absolute cost.
The Ricardo Revolution: Mastering David Ricardo's Economic Legacy
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