One of the Suggestions of New Trade Theory Is That

question 61

Multiple Choice

One of the suggestions of new trade theory is that

• A) differences in technology leads to differences in productivity, which in turn, drives international trade patterns.
• B) nations may benefit from trade irrespective of resource endowments or technology.
• C) the demand for most new products tends to be based on nonprice factors.
• D) globally dispersed production reduces the production costs of mature products.
• E) comparative advantage does not arrive from a difference in factor endowments but from a difference in productivity.

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Definitions:

Basic Needs

Fundamental requirements necessary for individuals to live a healthy and comfortable life, such as food, water, shelter, and clothing.

Failure

Failure refers to the state or condition of not meeting a desirable or intended objective, and can be seen as an opportunity for learning and growth.

Semi-Peripheral

Refers to countries that occupy an intermediate position in the global economic system, neither fully core nor fully peripheral.

Core Regions

Areas that dominate a country or region's economy, politics, and culture, often having advanced technological development and high levels of productivity.