New trade theory argues that, through its impact on economies of scale

QUESTION

New trade theory argues that, through its impact on economies of scale, trade can:

A. increase the average costs of goods.

B. enable the global market to support a wide range of enterprises.

C. negatively affect the first-mover advantage for all products.

D. increase the variety of goods available to consumers.

E. prevent diminishing of returns and promote constant returns to specialization.

ANSWER

D