The new trade theorists argue that in those industries where the existence of substantial economies of scale imply that the world market will profitable support only a few firms,countries may export certain products simply because they have a firm that was an early entrant into that industry.

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The statement accurately describes a key argument of new trade theorists. They suggest that in industries where economies of scale are significant, only a small number of firms can profitably operate in the global market. This can result in early entrants having a competitive advantage due to their established position, leading to certain countries exporting these products simply because they have such a firm.

The New Trade Theorists Argue That in Those Industries Where