Which of the Following Is an Empirically Supported Prediction of the New

question 104

Multiple Choice

Which of the following is an empirically supported prediction of the new trade theory?

• A)Trade increases the specialization of production within an industry.
• B)Nations benefit from trade only when they differ in factor endowments.
• C)Government intervention and strategic trade policies are more likely to harm international trade than is free trade.
• D)The locus of global production initially switches from the United States to other advanced nations.
• E)Comparative advantage arises from differences in productivity and factor endowments.

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