________ argues that increasing returns to scale, especially economies of scale, are important for superior international performance in industries that succeed best as their production volume increases.

Question

Quizplus · Accepted Answer

The statement is referring to the concept of economies of scale, which is a key component of the New Trade Theory. The New Trade Theory argues that firms that can capture increasing returns to scale through producing at larger volumes have a competitive advantage in international trade. Therefore, option D is the correct choice.

________ Argues That Increasing Returns to Scale, Especially Economies of Scale