Linder's hypothesis says that countries with ________ of preferences will trade intensively with each other.
A)differences
B)utility
C)similarity
D)elasticity

Question

Quizplus · Accepted Answer

Linder's hypothesis suggests that countries with similar preferences will have a greater demand for each other's goods and therefore, will trade more intensively. This is because countries with similar preferences are more likely to demand similar goods, leading to a comparative advantage in producing those goods and resulting in increased trade.

Linder's Hypothesis Says That Countries with ________ of Preferences Will