Adam Smith is considered the founder of the basic concepts of international trade

.docx

School

Royal Melbourne Institute of Technology**We aren't endorsed by this school

Course

ECON 1089

Subject

Economics

Date

Dec 17, 2024

Pages

Uploaded by BailiffDragonPerson901

Adam Smith is considered the founder of the basic concepts of international trade theory:Absolute advantageSmith's model of absolute advantage states that countries should specialize in producing goods where they have an advantage over other countries. For example, if a country can produce a good cheaper than another country, it should focus on producing that good.Division of laborSmith believed that dividing labor increased output.