New trade theory stresses that in some cases countries specialize in the production of particular products because of underlying differences in factor endowments.

Name: New trade theory stresses that in some cases countries specialize in the production of particular products because of underlying differences in factor endowments.
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Question

Quizplus · Accepted Answer

New trade theory emphasizes economies of scale and network effects, rather than differences in factor endowments, as reasons for specialization.

New Trade Theory Stresses That in Some Cases Countries Specialize