Mallory works for a company that produces cell phone component parts. Her company developed a component that no competitor had and was soon enjoying economies of scale as the only producers of the part. Which trade theory is most reflected in the success of this company?

Question

Quizplus · Accepted Answer

New trade theory suggests that through economies of scale and network effects, companies can achieve a dominant position in the market, which is reflected in Mallory's company being the sole producer of a unique component.

Mallory Works for a Company That Produces Cell Phone Component