What doctrine explains the rationale for why nations engage in trade?

The Doctrine of Comparative Advantage is a key economic principle that explains why nations engage in trade. This doctrine posits that countries should specialize in the production of goods and services for which they have a lower opportunity cost than other countries. By doing so, nations can maximize their efficiency and overall production, leading to greater overall wealth and resources exchanged through trade.

For instance, if one country is particularly efficient at producing wheat, while another can produce computers more efficiently, each nation benefits by specializing in the good it produces best. When these countries trade, they can both end up with more wheat and more computers than if each tried to produce both goods independently. This specialization and trade enhance economic efficiency and growth, as nations can focus on their strengths.

Other doctrines related to trade, such as Absolute Advantage Theory, focus on the ability of a country to produce more of a good with the same resources, but they do not encapsulate the concept of trade benefits based on opportunity costs as effectively as the Doctrine of Comparative Advantage. The Protectionist Doctrine, on the other hand, typically advocates for reducing trade to protect domestic industries, which contrasts with the idea of engaging in trade for mutual benefit. Lastly, the Market Equilibrium Principle deals more with the balance of supply and demand rather