Which of the Following Is an Argument Offered by the New

question 20

Multiple Choice

Which of the following is an argument offered by the new trade theory?

• A) It is in line with the factor proportions theory.
• B) There are gains to be made from specialization and increasing economies of scale.
• C) The companies first to market forgo the opportunities to create barriers to entry.
• D) Market forces alone play a role in assisting the home companies in a country.

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Definitions:

Arousal

A physiological and psychological state of being awake or reactive to stimuli, often associated with increased activity in the sympathetic nervous system.

Stimulus

Any event or situation that evokes a response from an organism.

Artistic Intelligence

An aspect of intelligence that involves the capacity to solve problems or create products by using artistic skills and creativity.

Naturalistic Intelligence

A type of intelligence proposed by Howard Gardner, relating to how well an individual can understand and interact with the natural world.