In order to obtain an efficient allocation of resources worldwide?
countries that have a lot of resources should ship resources to countries that do not have a lot of resources.
countries that have a lot of resources should not trade since poorer countries cannot compete.
each country should produce the good they have a comparative advantage in and then trade.
no trade among countries should occur.
- ?Lv 65 months ago
The answer is c as we have learned from Adam Smith and David Ricardo. And today we know that the comparative advantages can be manipulated. And the export oriented policy has been the most successful measures in many countries like Japan and China. And the free country like the US is in trouble.