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eduard
3 years ago
13

What does the Ricardian Theory state?

Social Studies
2 answers:
GalinKa [24]3 years ago
5 0

countries should produce all goods and services if they can

David Ricardo explained the classical theory of relative influence in 1817 to demonstrate why nations involve in global trade even when one country's artisans are more effective at generating individual goods than artisans in other nations. The modern transcription of the Ricardian Model estimates that there are two nations, creating two goods, utilizing one factor of the product, ordinarily labor.

Shalnov [3]3 years ago
4 0
I believe the second to last one is correct and its Richardian not Ricardian. okay so Richardian Theory onh international trade is basicaly like this. lets say country A produces product X and specializes in producing product Y and country B also produces product Y but specializes in producing product X. so these countries would trade because one country needs the other product and so forth. erm i dunno if this helps
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