According to the classical trade theories proposed by Smith and Ricardo, which of the following outcomes is expected?

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Nations will fully specialize in producing goods they exportSignificant trade takes place between countries with varying technological capabilitiesSmaller nations can benefit from trade when engaging with larger economiesAll the above statements are true

Explanation

Classical trade theories by Smith and Ricardo suggest that countries tend to specialize completely in their export products, that substantial trade occurs between nations with different technology levels, and that even smaller countries can gain advantages by trading with larger ones. Therefore, all the listed outcomes are accurate.