According to the new trade theory,how does trade offer an opportunity for mutual gain even when countries do not differ in their resource endowments or technology?

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As the size of the market expands due to trade,individual firms may be able to better attain economies of scale.The implication,according to new trade theory,is that each nation may be able to specialize in producing a narrower range of products,buying goods that it does not make from other countries.Thus,each nation can simultaneously increase the variety of goods available to its consumers and lower the costs of those goods-thus trade offers an opportunity for mutual gain even when countries do not differ in their resource endowments or technology.

According to the New Trade Theory,how Does Trade Offer an Opportunity