Which Trade Theory Suggests That Comparative Advantage Tends to Shift

question 97

Multiple Choice

Which trade theory suggests that comparative advantage tends to shift from one nation to another as a product matures?

• A) Interindustry trade theory
• B) Intraindustry trade theory
• C) Product life cycle theory
• D) Overlapping demand theory

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Definitions:

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Conclusion

The final part of something, notably an argument or text, where the main points are resolved or summarized.

Evidence

Evidence refers to information, facts, or data presented to support a claim, assertion, or hypothesis.

Generalization

A broad statement or conclusion that applies to many instances, derived from specific cases.