Absolute gain theory was first offered by Adam Smith in his book "The Riches of Nations" in 1776. Smith provided the first concept of a nation's riches. Adam Smith is a grandfather of economics because he presented two important principles that lots of of the new trade ideas derive from both of these main concepts, that happen to be expertise and free exchange (Cho et al. , 2000). However, many arguments were made and many economists thought there was a problem with the idea of absolute..