According to , it makes sense for a country to specialize in the production of those goods that it produces most efficiently and to buy the goods that it produces less efficiently from other countries, even if this means buying goods from other countries that could produce more efficiently itself.

According to Ricardo's Theory of Comparative Advantage.

Explanation:

According to Ricardo's Theory of Comparative Advantage, it makes sense for a country to produce those products which can be produced most efficiently and buy those product from other country which can be produced less efficiently.

David Ricardo produced the classical theory of comparative advantage in the year 1817 as he describes why countries involved in global trade while workers of a country are more effective at manufacturing every single product in comparison to the workers in other countries. He further explained that if two countries are competent to produce two products involve in the free market, then each country will improve its overall consumption through exporting the product for which it has a comparative advantage while importing the other product, implemented that there exist variations in labor productivity between both of the countries.

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