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:

Bond Payments

The regular interest payments made to bondholders, as well as the return of principal at the bond's maturity date.

Debenture

An unsecured loan certificate issued by a company, backed by general credit rather than by specified assets.

Issuing Firm

A company that offers securities to the public or existing shareholders.

Unfunded Bond

A bond issued without a specific reserve fund set aside for its repayment, relying solely on the issuer's general creditworthiness.