Which of the following is a statement that supports the theory of comparative advantage?

A. International trade is a zero-sum gain where one nation’s gain is another’s loss.

B. Domestic industries are at risk when a country engages in free trade.

C. A country should maintain trade surplus to succeed in global trade.

D. Global production is greater with free trade than it is with restricted trade.


ANSWER:

D. Global production is greater with free trade than it is with restricted trade.