With whom is the earliest formulation of the comparative advantage principle credited?
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Answer: B. David Ricardo
Explanation
David Ricardo is universally credited with formulating the classical principle of comparative advantage in eighteen seventeen. His foundational economic treatise introduced the idea that trade benefits countries even if one is absolutely more efficient. Ricardo used numerical examples involving wine and cloth trade between England and Portugal to prove his theory. Comparative advantage occurs when a country can produce a good at a lower opportunity cost than its trading partners. This principle forms the theoretical bedrock of modern international trade economics and globalization arguments. Classical economists expanded upon earlier absolute advantage theories to explain why nations engage in mutually beneficial trade.
Adam Smith pioneered the theory of absolute advantage rather than the foundational principle of comparative advantage. Eli Heckscher contributed significantly to factor proportion trade theory alongside Ohlin much later in history. Berti Ohlin partnered with Heckscher to develop modern resource-based trade models rather than original comparative advantage.
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