The New Trade Theory Diverts from Its Advocacy of Free

The new trade theory diverts from its advocacy of free trade by:

A) suggesting that price of a new product increases along with the increase in the popularity of the product.
B) suggesting that nations benefit from trade even in absence of resource endowments and technology.
C) suggesting an economic rationale for a proactive trade policy.
D) stressing the role of luck, entrepreneurship, and innovation in giving a firm first-mover advantages.
E) suggesting that market expansion leads to better realization of economies of scale.