According to the new trade theory, trade, through its impact on econom

QUESTION

According to the new trade theory, trade, through its impact on economies of scale, is most likely to:

A. reduce the volume of the goods produced.

B. decrease the variety of goods available to consumers.

C. decrease the average costs of goods.

D. inhibit first-mover advantages in all industries.

E. benefit only nations that differ in resource endowments or technology.

ANSWER

C