Which of the following factors is taken into consideration by David Ri

QUESTION

Which of the following factors is taken into consideration by David Ricardo’s theory of comparative advantage in order to explain the pattern of international trade?

A. Absolute advantage of a country with reference to natural resources

B. The proportions in which the factors of production are available

C. International differences in labor productivity

D. The ability of firms to cope with late-mover disadvantages

E. The ability of firms to capture first-mover advantages

ANSWER

C