New trade theory focuses on:

CA Foundation · Business Economics · MTP · June 2024
New trade theory focuses on:
(A) A. (b) Imports of goods (d) Government expenditures traditional theories of international trade - comparative advantage and absolute advantage
(B) B. increasing returns to scale and network effects
(C) C. role of government intervention in trade policy
(D) D. none of the above

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. increasing returns to scale and network effects

Topics: Determination of National Income

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