According to ________, trade between two countries allows each of the trading countries to allocate its resources most efficiently.
A. the General Agreement on Tariffs and Trade
B. the theory of absolute advantage
C. the Heckscher-Ohlin theorem
D. the theory of comparative advantage
Answer: D
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When a nation's political environment is more favorable, it will:
a. attract more physical investment. b. encourage individuals to invest more heavily in human capital. c. encourage the development and efficient use of natural resources. d. do all of these.
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