New Trade Theory emphasizes:

CA Foundation · Business Economics · MTP · September 2025
New Trade Theory emphasizes:
(A) A. No gains from trade
(B) B. Constant returns to scale
(C) C. Economies of scale and product variety
(D) D. No role for governments

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Economies of scale and product variety

Topics: International Trade

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