Identify the theory that supports the view that in some cases countries export for the reason that the world market can support only a limited number of firms. A. Heckscher-Ohlin theoryB. Smith's theoryC. Ricardo's theoryD. New trade theory

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Social Studies

Titus Simon

7 July, 08:48

Identify the theory that supports the view that in some cases countries export for the reason that the world market can support only a limited number of firms. A. Heckscher-Ohlin theoryB. Smith's theoryC. Ricardo's theoryD. New trade theory

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Maxim Livingston · Answer 1

D. New Trade Theory

Explanation:

The theory that supports the view that in some cases countries export for the reason that the world market can support only a limited number of firms, is the New Trade Theory. This is the only theory that emphasizes that in few countries that specialize in production and exports of certain products, it is the case only because some industries in which they are operating in can only support a very limited amount of firms.