Assertion (A): According to Adam Smith, the basis of international trade was absolute cost advantage
Reason (R): Trade between two countries would be mutually beneficial when one country produces a commodity at an absolute cost advantage over the other country which in turn produces another commodity at an absolute cost advantage over the first country.
Both A and R are true and R is the correct explanation of A.
Both A and R are true but R is not the correct explanation of A.
A is true but R is false.
A is false but R is true.
