New Trade Theory Suggests That Nations Cannot Benefit from Trade

question 12

True/False

New trade theory suggests that nations cannot benefit from trade when they do not differ in resource endowments or technology.

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Definitions:

Constant Dividend

A dividend policy in which a company pays a fixed amount in dividends to shareholders permanently or over a long period.

Required Return

The lowest profit anticipated by an investor from a specific investment, considering the associated risks.

Dividend

A portion of a company's earnings distributed to shareholders, usually in cash or additional stock.

Equity Investments

Investments in stock or equity securities, giving the investor partial ownership in a company.