Which of the following is true of a world without trade that has industries where economies of scale are important?
A) The variety of goods that a country can produce and the scale of production are limited by the size of the market.
B) Each nation will specialize in producing a narrower range of products than it would in the presence of trade.
C) Each nation can simultaneously increase the variety of goods available to its consumers and lower the costs of those goods.
D) The absence of trade is mutually beneficial because it allows for the specialization of production.
E) The first movers in an industry may get a lock on the world market that discourages subsequent entry.
Correct Answer:
Verified
Q85: The new trade theory states that
A)the locus
Q92: One of the suggestions of the new
Q94: According to the new trade theory, which
Q100: Which of the following advantages is most
Q101: Which of the following is true of
Q103: According to the new trade theory,trade,through its
Q104: Which of the following was being determined
Q104: According to Porter's diamond, what are factor
Q107: Which of the following is an empirically
Q108: The new trade theory is at variance
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents