In classical theory of international trade, the exchange of goods and services takes place on the basis…
The classical theory of international trade uses a barter framework. Goods are exchanged for goods, allowing the analysis to focus on relative costs and real exchange…
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In classical theory of international trade, the exchange of goods and services takes place on the basis of the __________ system.
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Correct answer A
The classical theory of international trade uses a barter framework. Goods are exchanged for goods, allowing the analysis to focus on relative costs and real exchange ratios. Money is abstracted from in this basic framework.
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Gujarat SET (GSET)