Paper 3 · Exchange Rates and International Trade
The classical economist credited with developing the theory of comparative advantage in international trade was ______.
Model answer
david ricardo
Also accepted: ricardo
Explanation: David Ricardo showed that mutually beneficial trade can occur even when one country has an absolute advantage in producing every good, as long as each country specialises according to comparative (opportunity-cost) advantage.
Derived from ZIMSEC Economics Paper 3, June 2004, Q9
