Business Environment and International Business Socio-cultural factors and their influence on business Theories of international trade
(A): International trade along the lines of comparative advantage improves the allocative efficiency of existing resources.
(R): International trade is an engine of growth.
1
Both (A) and (R) are true and (R) is the correct explanation of (A).
2
Both (A) and (R) are true, but (R) is not the correct explanation of (A).
3
(A) is true, but (R) is false.
4
More than one of the above
5
None of the above