The new trade theory is at variance with the _____ theory,which suggests that a country will predominate in the export of a product when it is particularly well endowed with those factors used intensively in its manufacture.

Question

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The Heckscher-Ohlin theory suggests that a country will have a comparative advantage in producing and exporting products that utilize factors of production that are abundantly available in that country. In contrast, the new trade theory suggests that countries can develop a competitive advantage in certain industries, even if they do not have a comparative advantage in the production of the goods.

The New Trade Theory Is at Variance with the _____