______ developed international trade theory in 1817 based on comparative advantage and specialisation.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. David Ricardo.
- David Ricardo was a British political economist along with Thomas Malthus, Adam Smith, and James Mill.
- He was best known for his theory on wages and profit, the labor theory of value, the theory of comparative advantage, and the theory of rents.
- He developed international trade theory in 1817.
- As per the Ricardian theory of trade, comparative advantage determines the pattern of trade.
- His theory is based on differences in technology across nations.
- As per his theory, a nation is said to have a comparative advantage is good if it can produce relatively more efficiently or relatively less efficiently compared to other nations.