The ____________s that due to the presence of substantial scale economies,world demand will support only a few firms in many industries.

Question

Quizplus · Accepted Answer

The statement refers to the concept of new trade theory, which argues that due to economies of scale, global demand can only sustain a few firms in competitive industries. This idea challenges the assumptions of traditional trade theory, such as Heckscher-Ohlin and product life-cycle theories, and is not related to the Leontief paradox, which deals with the paradoxical findings of the empirical testing of Heckscher-Ohlin theory.

The ____________S That Due to the Presence of Substantial Scale