International trade has long been a key driver of economic growth and development, facilitating the exchange of goods and services across borders. Countries engage in trade for various reasons, many of which are rooted in economic theories that have evolved over centuries. Several key theories explain why nations participate in global commerce, each highlighting different aspects of specialization, efficiency, and competitive advantage. These theories provide the foundation for understanding the reasons and motivations behind international trade and its benefits . One of the earliest and most influential theories of international trade is the Theory of Absolute Advantage, proposed by Adam Smith in his seminal work, The Wealth of Nations . Smith argued that countries should specialize in producing and exporting goods in which they have an absolute advantage, meaning they can produce these goods more efficiently than other countries. Efficiency, in this context, is determ...
...so, why ask why?