Which of the following theories form the basis of international trade?
1. Absolute cost difference
2. Comparative cost difference
3. Opportunity cost

Question

Which of the following theories form the basis of international trade?
1. Absolute cost difference
2. Comparative cost difference
3. Opportunity cost
Select the correct answer using the codes given below:

Accepted Answer

(D) 1, 2 and 3

Answer

(A) Only 1

Answer

(B) 1 and 2

Answer

(C) Only 2