According to the new trade theory,trade,through its impact on economies of scale,is most likely to:

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The new trade theory suggests that trade can decrease the average costs of goods by allowing firms to achieve economies of scale through increased production. This means that as production increases, the cost per unit decreases, leading to lower prices and increased consumer surplus. Therefore, the most likely outcome of trade, according to this theory, is a decrease in average costs rather than a decrease in the volume of goods produced or variety available to consumers. The theory also does not suggest that trade inhibits first-mover advantages, nor does it only benefit nations that differ in resource endowments or technology.

According to the New Trade Theory,trade,through Its Impact on Economies