Porter’s theory has been subjected to detailed empirical testing and i

QUESTION

Porter’s theory has been subjected to detailed empirical testing and it is proven that it accurately predicts international trade patterns.

Indicate whether the statement is true or false.

ANSWER

FALSE
Porter’s theory has not been subjected to detailed empirical testing. Much about the theory rings true, but the same can be said for the new trade theory, the theory of comparative advantage, and the Heckscher-Ohlin theory.