The correct answer is C. Vent-for-surplus theory.
The vent-for-surplus theory is a theory of international trade that states that a country will export goods that it can produce in surplus, regardless of its comparative advantage. The theory was first proposed by Adam Smith in his book The Wealth of Nations, and it has been used to explain the trade patterns of many countries, including the United States, Canada, and Australia.
The vent-for-surplus theory is based on the idea that countries have a natural abundance of certain resources. When these resources are used to produce goods, the country will have a surplus of those goods. The country can then export the surplus goods to other countries, which will provide the country with income.
The vent-for-surplus theory is a simple theory, but it has been very influential in the field of international trade. The theory has been used to explain the trade patterns of many countries, and it has also been used to develop policies that promote trade.
The other options are incorrect because they are not theories of international trade that state that a country will export goods that it can produce in surplus.
- Ricardian theory is a theory of international trade that states that a country will export goods that it can produce at a lower cost than other countries.
- Heckscher-Ohlin theory is a theory of international trade that states that a country will export goods that use its abundant factors of production intensively.
- Strategic trade theory is a theory of international trade that states that a country can use government intervention to promote its own industries and gain an advantage in international trade.