According to the new trade theory,firms that establish ______antage with regards to the production of a particular new product may subsequently dominate global trade in that product.

Question

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The new trade theory suggests that firms which are first to enter a market with a new product can gain significant advantages, such as economies of scale and network effects, allowing them to dominate global trade in that product. This is known as the first-mover advantage.

According to the New Trade Theory,firms That Establish ______Antage with Regards