Which of the following is true of the strategic trade theory?
A) It provides direct policy advice.
B) It advocates complete deregulation of international trade.
C) It explains patterns of trade based on factor endowments.
D) It is the first theory to account for dynamic changes in trade patterns.

Question

Which of the following is true of the strategic trade theory? 
A) It provides direct policy advice. 
B) It advocates complete deregulation of international trade. 
C) It explains patterns of trade based on factor endowments. 
D) It is the first theory to account for dynamic changes in trade patterns.

Quizplus · Accepted Answer

Strategic trade theory provides direct policy advice by suggesting that governments can enhance their countries' economic welfare through targeted policies that help domestic firms gain competitive advantages in certain industries. This contrasts with theories advocating for complete deregulation or explaining trade solely based on factor endowments.

Which of the Following Is True of the Strategic Trade