Fundamentals of International Economics

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    Babatunde Eniola
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      This theory suggests that countries should produce goods in which they have a lower opportunity cost and trade for goods that are more costly for them to produce.

      This occurs when a country can produce a good more efficiently than other countries.

      This theory states that countries will export goods that use their abundant and cheap factors of production and import goods that use the countries’ scarce factors.

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