- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 6. International Trade
- Subject 1. International Trade
CFA Practice Question
The Ricardian model concludes that ______
A. everyone benefits from trade.
B. there will be winners and losers from trade.
C. countries trade because they differ in their endowments of resources.
Explanation: The model incorporates differences in technologies between countries and concludes that everyone benefits from trade. Statements B and C are ideas of the Heckscher-Ohlin model.
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