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11 June, 13:08

The new trade theory stresses that countries should have favorable factor endowments to excel in the production of a good.

a. True

b. False

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  1. 11 June, 14:40
    0
    False. The new trade theory stresses that countries should have favorable factor endowments to excel in the production of a good. The New Trade Theory talks about companies focusing on certain products more in-depth since the world market only supports a limited number of firms. Since they can only back a few per product, if companies were to focus on a smaller amount of products they can specialize in them and create a better backing from the world market.
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