Which of the following is NOT a reason for the development of modern firm-based trade theories?

A. Recognition of the growing importance of MNCs in the postwar international economy

B. The recognition that countries, not firms, are the agents for international trade

C. Firm-based theories incorporate factors such as quality, technology, brand names, and customer loyalty into explanations of trade flows

D. The inability of the country based theories to explain and predict the existence and growth of intraindustry trade

Question

Business

Byron Snyder

2 May, 17:40

Which of the following is NOT a reason for the development of modern firm-based trade theories?

A. Recognition of the growing importance of MNCs in the postwar international economy

B. The recognition that countries, not firms, are the agents for international trade

C. Firm-based theories incorporate factors such as quality, technology, brand names, and customer loyalty into explanations of trade flows

D. The inability of the country based theories to explain and predict the existence and growth of intraindustry trade

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Answers (1)

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Lesly Edwards · Answer 1

D. The inability of the country based theories to explain and predict the existence and growth of intra industry trade

Explanation:

The Heckscher and Ohlin modern theory of the growth of the international trade that focuses on the importance of the comparative advantage of the two counties and related to the factor of endowments and the difference between the two countries attributed to them out of resources such as the land capital and the labor. As the opportunities that the country may face when bringing the new product into the new markets that determine the product maturity and the standardized product.