One of the Suggestions of New Trade Theory Is That

question 61

Multiple Choice

One of the suggestions of new trade theory is that

• A) differences in technology leads to differences in productivity, which in turn, drives international trade patterns.
• B) nations may benefit from trade irrespective of resource endowments or technology.
• C) the demand for most new products tends to be based on nonprice factors.
• D) globally dispersed production reduces the production costs of mature products.
• E) comparative advantage does not arrive from a difference in factor endowments but from a difference in productivity.

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