Country A specializes in the production of textiles and does it more
efficiently than any other country. Country B produces rice. In theory,
Country A could produce rice more efficiently than Country B. However,
since Country A chooses to put all of its resources into the production of
textiles, it buys rice from Country B. Which of the following theories of
international trade supports Country A's decision to buy rice from
Country B?
New-trade theory
The Heckscher-Ohlin theory
Mercantilism
Ricardo's theory of comparative advantage
Adam Smith's theory of absolute advantage