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The Linder Theory of Trade Suggests That

Question 4

Multiple Choice

The Linder theory of trade suggests that


A) a country with a per capita income of $15,000 is likely to have more intense trade with A country that has a per capita income of $16,000 than with a country that has aPer capita income of $25,000.
B) the most intense trade of low-income, developing countries will be with high-income,Developed countries.
C) countries will confine themselves to inter-industry trade.
D) the exports of primary products of a country will mainly flow to other countries with Per capita income levels similar to that of the exporting country.

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