The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5

-According to strategic trade policy, international trade largely involves firms that:

Question

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5
 
-According to strategic trade policy, international trade largely involves firms that:

Quizplus · Accepted Answer

Strategic trade policy suggests that countries should support firms that pursue economies of scale, as these firms can eventually achieve lower production costs and outcompete foreign firms. Therefore, the answer is C, which is the choice that best corresponds to the idea of economies of scale. Choices A, B, D, and E do not directly relate to the theory of strategic trade policy.

The Table Below Shows the Quantity Demanded (In Thousands) and Quantity