According to New Trade Theory, What Is Most Likely to Be

question 75

Multiple Choice

According to new trade theory, what is most likely to be a result of market expansion due to trade?

• A) A wide variety of products is produced at greater unit costs than in the absence of trade.
• B) As the variety of products increases, demand for individual products decreases, leading to non-realization of economies of scale.
• C) Each nation may specialize in producing a narrower range of products, importing goods that it does not make.
• D) The ability to capture first-mover advantages is restricted in a world that allows trade.
• E) When countries do not differ in their resource endowments or technology, trade does not offer mutual benefits.

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Definitions:

Take Initiative

The act of taking the first step or move in a situation without waiting for others to act.

Shared Ownership

A form of property ownership where multiple parties hold rights to use or possess property, often seen in businesses and real estate.

Tight Control

A management approach that relies on closely monitoring and controlling organizational activities and processes.

Production-Centred

Focused or centered around the production or manufacturing process within an organization.