The country similarity theory suggests that most trade in manufactured goods should be between countries with similar ________.

Question

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The country similarity theory, particularly in the context of international trade, posits that countries with similar levels of economic development are more likely to engage in trade of manufactured goods with each other. This is because they have similar consumer preferences and industrial structures, leading to a demand for similar types of goods and services.

The Country Similarity Theory Suggests That Most Trade in Manufactured