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

Multiple Choice

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

A) Brand loyalty
B) NAFTA
C) The free-trade doctrine
D) Collectivism