Question

All of the following theories show why it is beneficial for a country to engage in international trade even for products it is able to produce for itself, except:_____________. 1. Comparative advantage 2. Mercantilism 3. Absolute advantage 4. Heckscher-Ohlin

Answer 1

Mercantilism

Step-by-step explanation:

Mercantilism is associated with policies which restrict imports.

A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries. A country should trade in goods for which it has comparative advantage.

A country has absolute advantage in the production of a good or service If it produces more quantity of the good when compared with other countries .

The Heckscher-Ohlin model is an economic theory that suggests that countries should export what they can efficiently produce.

I hope my answer helps you

Answer 2

Mercantilism

Step-by-step explanation:

Comparative advantage, absolute advantage and heckscher ohlin all advocates for countries to engage in international trade even for products that they are able to produce for them selves. While Mercantilism seeks to limit international trade mostly on goods that can be produced locally with the aim of increasing export over import and promoting domestic industries. Mercantilism is designed to maximize export and minimize imports. So, it discourages imports of products that a country is able to produce.