International trade rests on which economic principle?
AComparative advantage
BAbsolute monarchy rule
CCentral state planning
DComplete self-sufficiency
Answer & Solution
Correct answer: A. Comparative advantage
1. Specialisation and division of labour create trade.
2. It is based on comparative advantage.
3. Complementarity and transferability also matter.
_Source: syllabus Geography, Fundamentals of Human Geography, Chapter 9, International Trade._
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