According to the new trade theory,countries whose firms establish a(n)_____ advantage with regard to the production of a particular new product may subsequently dominate global trade in that product.

Question

Quizplus · Accepted Answer

Countries may dominate in the export of certain goods because economies of scale are important in their production and because firms located in those countries were the first to capture scale economies,giving them a first-mover advantage.

According to the New Trade Theory,countries Whose Firms Establish A(n)_____