According to New Trade Theory,which of the Following Could Be

question 141

Multiple Choice

According to new trade theory,which of the following could be a result of the economies of scale that may be achieved by individual firms as the size of the market expands due to trade?

• A)Each nation can produce a wider variety of goods,minimizing its imports.
• B)Each nation can simultaneously decrease the variety of goods available to its consumers and raise the costs of those goods.
• C)Each nation may specialize in producing a narrower range of products,importing goods that it does not make.
• D)Each nation can attain self-sufficiency in most products and eliminate exports.

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Definitions:

Product Consistency

The assurance that a product or service will be delivered in the same quality and standard across different units, times, or locations.

J.R. Simplot

An American entrepreneur and businessman known for founding the J.R. Simplot Company, a major agricultural supplier specializing in a variety of products, including potatoes for French fries.

Hierarchy

An arrangement or institution where individuals or entities are positioned hierarchically, based on their status or power.

Low-Cost Strategy

A competitive strategy focusing on producing goods or services at the lowest possible cost to attract price-sensitive customers.