In The Wealth of Nations, Adam Smith mentions that very good grapes could be grown in Scotland. However, growing high quality grapes in Scotland would be about 30 times
more expensive than purchasing grapes from foreign countries. Some nations are better than others at producing things. This is due to the availability of natural resources and
other factors.
Which statement would Adam Smith support?
Nations should export as many different types of goods or services as possible, even if it is costly to produce them.
Nations should do their best to produce all goods within their own territory.
A nation should diversify when it can use its resources to produce goods and services more efficiently than other nations,
Each nation should specialize in producing only the goods or services that it uses.