Which theory stresses that in some cases countries specialize in the production and export of particular products not because of underlying differences in factor endowments,but because in certain industries the world market can support only a limited number of firms?

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The theory that stresses that in some cases countries specialize in the production and export of particular products not because of underlying differences in factor endowments but because in certain industries, the world market can support only a limited number of firms is the New Trade theory. This theory suggests that economies of scale and network effects create a first-mover advantage for companies in certain industries, leading to concentrated production and trade in those industries.

Which Theory Stresses That in Some Cases Countries Specialize in the Production