Which of the following is not one of the features of New Trade Theory by Paul Krugman?

CA Foundation · Business Economics · MTP · June 2024
Which of the following is not one of the features of New Trade Theory by Paul Krugman?
(A) A. Countries which trade in similar goods are natural trade partners
(B) B. It is based on labour theory of value
(C) C. Network effect as means of engaging in international trade
(D) D. It focuses more on economies of scale

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. It is based on labour theory of value

Topics: International Trade

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