The new trade theory states that a country dominates the export of a product because it has a company that has acquired ______________________.

Question

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The new trade theory emphasizes that a country can dominate the export of a product even in the absence of an absolute advantage in production. Instead, it can leverage a first-mover advantage - that is, a company or companies within that country may have been the first to develop and produce the product, giving them a head start in terms of experience, learning-by-doing, and market share. This can create barriers to entry for other firms, both domestic and foreign, and allow the first-mover firms and the country as a whole to reap significant economic benefits.

The New Trade Theory States That a Country Dominates the Export