Absolute cost Advantage theory-Adam Smith Introduction :- The oldest and most popular theory of international trade is the classical theory of comparative costs or profit. Adam Smith was the first economist to emphasize that different countries can reach better living standards if they trade freely with each other. Mercantilists, before Adam Smith...

Life-cycle hypothesis The life-cycle hypothesis (LCH) is an economic theory that describes the spending and saving habits of people over the course of a lifetime. The concept was developed by Franco Modigliani and his student Richard Brumberg in the early 1950s. The theory is that individuals seek to smooth consumption  throughout their lifetime...