New Trade Theory Is in Line with the Theory of ________

question 59

Multiple Choice

New trade theory is in line with the theory of ________ but at odds with ________ theory.

• A) international product life cycle; comparative advantage
• B) comparative advantage; factor proportions
• C) national competitive advantage; international product life cycle
• D) factor proportions; absolute advantage

---

Definitions:

Generalizability

The extent to which findings from a study can be applied to broader populations, settings, and times.

Construct Validity

The degree to which a test or instrument measures the theoretical construct it is intended to measure.

Face Validity

The extent to which a test or instrument appears to measure what it is supposed to measure, based on a superficial assessment.

Third-variable Problem

A confounding issue in research that occurs when a seemingly causal relationship between two variables is actually caused by an unseen, third variable.