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:

Nonscientific Approaches

Methods or theories not based on or adhering to the scientific method, often relying on subjective interpretation or anecdotal evidence.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity results in irrational or dysfunctional decision-making outcomes.

Qualitative Study

A research method focusing on obtaining data through open-ended and conversational communication, aimed at understanding concepts, thoughts, or experiences.

Independent Variable

The variable in an experimental setting that is manipulated or changed to observe its effect on the dependent variable.