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The New Trade Theory Diverts from Its Advocacy of Free

Question 113

Multiple Choice

The new trade theory diverts from its advocacy of free trade by:


A) suggesting that first-mover advantages influence domination of certain countries in specific industries.
B) suggesting that nations benefit even in absence of resource endowments and technology.
C) indirectly suggesting an economic rationale for a proactive trade policy.
D) stressing the role of luck,entrepreneurship,and innovation in giving a firm first-mover advantages.

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