"Under a system of perfectly free commerce, each country naturally devotes its capital and labour to such employments as are most beneficial to each."
— David Ricardo
Under A System Of Perfectly Free
Under a system of perfectly free commerce, each country naturally devotes its capital and labour to such employments as are most beneficial to each.
About this quote
From Principles of Political Economy and Taxation (1817), Chapter 7, "On Foreign Trade." This passage is the classic formulation of the doctrine of comparative advantage — Ricardo's most enduring contribution to economics. Even if one country can produce everything more efficiently than another, both benefit from specializing in what they produce relatively best and trading freely. The argument remains the foundation of the case for international free trade.
Source
Principles of Political Economy and Taxation, Chapter 7 (1817)
