Which of the following is true with regard to new trade theory?

Question

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According to new trade theory, trade is beneficial even for countries that produce only a limited variety of products. This is because countries can specialize in producing a few products in which they have a comparative advantage and trade with other countries for the products they cannot efficiently produce. Option A is incorrect because achieving economies of scale is seen as an important factor for superior international performance in new trade theory. Option C is incorrect because new trade theory does not suggest that exports are less beneficial to firms than commonly believed. Option D is incorrect because new trade theory considers not only production factors but also other factors that might affect a country's comparative advantage, such as specialization and learning effects.

Which of the Following Is True with Regard to New