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1. The economic theory of 'Comparative Advantage', which argues for specialization and trade, was first formulated by which economist?
David Ricardo introduced the law of comparative advantage in his 1817 book 'On the Principles of Political Economy and Taxation'. He used the example of England and Portugal trading cloth and wine to show that even if one country is more efficient in producing all goods, both can benefit from trade by specializing in where they have a relative efficiency.