Examples of ___________ considerations in the strategic trade theory include the willingness to subsidize workers' education or protecting the industry from foreign competition.
A)price
B)cost
C)service
D)repetition
E)externalities

Question

Quizplus · Accepted Answer

The term "externalities" refers to factors that are relevant to a decision but are not explicitly taken into account. In the context of strategic trade theory, externalities would include considerations like the willingness to subsidize workers' education or protecting the industry from foreign competition, which may have a positive impact on the national economy overall but are not necessarily taken into account in a purely economic analysis of the costs and benefits of a particular trade policy. Therefore, the best choice is E.

Examples of ___________ Considerations in the Strategic Trade Theory Include