Question

Choose the correct sequence of development of trade theories:
• [A.] Heckscher--Ohlin Model
• [B.] Theory of Comparative Advantages
• [C.] The Specific Factors Model
• [D.] The Theory of Absolute Advantages Choose the correct answer from the options given below:

• A. B, D, C and A
• B. D, B, C and A
• C. C, D, A and B
• D. A, B, C and D

Hint:

Remember the evolution of international trade theories: \[ \boxed{ \begin{aligned} 1776 &\rightarrow \text{Absolute Advantage (Adam Smith)}, 1817 &\rightarrow \text{Comparative Advantage (David Ricardo)}, \text{Later} &\rightarrow \text{Specific Factors Model}, \text{Later} &\rightarrow \text{Heckscher--Ohlin Model}. \end{aligned} } \] The sequence can be memorized as: \[ \boxed{\text{Absolute} \rightarrow \text{Comparative} \rightarrow \text{Specific Factors} \rightarrow \text{Heckscher--Ohlin}} \]

Answer 1

The Correct Option is B