Question

______ states that specialization and trade between countries benefit all who are involved.
a. ethnocentrism
b. the theory of comparative advantage
c. a turnkey project
d. absolute advantage
e. competitive advantage

Explanation:

The question is about a theory related to specialization and trade between countries. The theory of comparative advantage (option B) states that even if a country has no absolute advantage in any good, it can still benefit from trade by specializing in goods with lower opportunity costs. Ethnocentrism (A) is about cultural bias, a turnkey project (C) is a business project type, absolute advantage (D) is about being more efficient in production, and competitive advantage (E) is about firm - level advantages. So the correct option is B.

Answer:

B. The theory of comparative advantage