The Linder theory assets that,for manufactured goods,countries with ______ will trade intensively with each other.
A) similar demand conditions
B) unlike demand conditions
C) similar supply conditions
D) unlike supply conditions

Question

Quizplus · Accepted Answer

The Linder theory proposes that countries with similar demand conditions will trade more with each other, as they have a greater willingness to pay for goods that meet their specific preferences and tastes. This is supported by the observation that countries with similar income levels, consumer tastes, and product standards tend to specialize in the production of similar goods, which enables them to trade more efficiently with one another. Therefore, the answer is A.

The Linder Theory Assets That,for Manufactured Goods,countries with ______ Will