Question

Among the following theories of international trade, which one is the oldest?

• A. Theory of Absolute Advantage
• B. Mercantilist Doctrine
• C. Factor Proportions Theory
• D. Theory of Comparative Advantage

Hint:

Mercantilism focused on accumulation of gold and trade surplus, predating classical trade theories.

Answer 1

The Correct Option is B

Step 1: Recall historical order.
- Mercantilist Doctrine (16th–18th century) → oldest trade theory
- Absolute Advantage → Adam Smith, 1776
- Comparative Advantage → David Ricardo, 1817
- Factor Proportions → Heckscher-Ohlin, 20th century