Companies from the Nation of Moldavia Are More Efficient in the Production

Multiple Choice

Companies from the nation of Moldavia are more efficient in the production of certain types of apparel, while companies from the United States are more efficient in the production of certain types of computers. Which economic theory predicts that capital would move to Moldavia to be invested there in the apparel industry and to the United States to be invested in its computer companies?

A) rapid specialization theory
B) investor collectivism theory
C) free-trade doctrine
D) investor individualism doctrine