The Theory of Overlapping Demand

The theory of overlapping demand

A) explains how international trade in manufactured goods will be linked to gross national income.
B) states that a nation will trade goods that can be produced with the production factor that is most abundant.
C) explains why companies will add excess capacity to their production systems.
D) explains the existence of similar preferences and demands among countries with similar income levels.
E) explains where competitive clusters will occur.