Which of the Following Is TRUE with Regard to New

question 7

Multiple Choice

Which of the following is TRUE with regard to new trade theory?

• A) According to new trade theory, achieving economies of scale is not necessary for superior international performance.
• B) According to new trade theory, trade is beneficial even for countries that produce only a limited variety of products.
• C) New trade theory suggests that export is less beneficial to firms than commonly believed.
• D) New trade theory rests solely on the premise that countries differ in the type and quantity of production factors they possess.

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Definitions:

Phase Angle

The angular difference in degrees between the peak values of two alternating currents or voltages that have the same frequency but are not in phase.

Stator

The stationary part of an electric machine, such as a motor or generator, that houses the coil windings and does not rotate.

RPM

Stands for revolutions per minute, a unit of rotational speed indicating the number of turns made by an object in one minute.

Torque

The turning force developed by a motor.