Which of the Following Is True with Regard to New

question 24

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:

Berlin Airlift

A military operation in 1948-1949 where Western allies supplied West Berlin by air during the Soviet blockade.

Soviet Union

A federal socialist state in Eurasia that existed from 1922 to 1991, composed of multiple republics, and a principal actor in the Cold War.

Cold War

A period of geopolitical tension between the Soviet Union and the United States and their respective allies, from the end of World War II until the dissolution of the Soviet Union in 1991, characterized by threats, propaganda, and other measures short of open warfare.

Operation Wetback

A 1954 initiative by the U.S. government to remove illegal immigrants, primarily Mexicans, from the United States, resulting in the deportation of thousands.