Darren, a trade analyst, believes that trade is a function of a specific company's strategic initiatives and not country-level factors, production factors, or even industry characteristics. Darren's belief reflects the _____.
A) theory of absolute advantage
B) theory of comparative advantage
C) theory of economies of scale
D) theory of the international product life cycle

Question

Quizplus · Accepted Answer

Darren's belief aligns with the theory of economies of scale, which focuses on the efficiencies and advantages a company can achieve through its own strategic initiatives, rather than external factors like country-level or industry characteristics.

Darren, a Trade Analyst, Believes That Trade Is a Function