Because of substantial economies of scale, the __________ theory argues that in many industries there are increasing returns to specialisation.

Question

Quizplus · Accepted Answer

The new trade theory argues that in many industries there are increasing returns to specialization, primarily due to substantial economies of scale. This theory diverges from traditional trade theories by emphasizing the role of market size and economies of scale in trade.

Because of Substantial Economies of Scale, the __________ Theory Argues