Identify the theory that supports the view that, in some cases, countries export for the reason that the world market can support only a limited number of firms.
A) Heckscher-Ohlin theory
B) Smith's theory
C) Ricardo's theory
D) new trade theory

Question

Quizplus · Accepted Answer

New trade theory stresses that in some cases countries specialize in the production and export of particular products not because of underlying differences in factor endowments, but because in certain industries the world market can support only a limited number of firms.

Identify the Theory That Supports the View That, in Some