The ___________ theory attempts to explain international trade by examining the pattern of consumer demand for products.

Question

Quizplus · Accepted Answer

The Linder theory, proposed by economist Staffan Linder, suggests that the pattern of consumer demand for products is what drives international trade. The theory suggests that countries with similar income levels and thus similar consumer demands for goods are more likely to trade with each other, while countries with different income levels are less likely to engage in trade with each other.

The ___________ Theory Attempts to Explain International Trade by Examining