Countries trade with one another, especially to obtain goods that it does not produce, or even to offload any excess produce. There have been advanced several theories that that support the theory of international trade. The most common ones include Mercantilism, by William Petty, Thomas Mun and Antoine de Montchrétien model, the theory of comparative advantage by (David Ricardo model) and also the theory of absolute advantage by Adam smith. Mercantilism was the oldest theory that was fronted in relation to international trade, in the 1600’s ( Jones & Ronald,1987). This paper attempts to explain the ...
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