Among the following, what conclusion can be given to the new trade theory? a) A country may export a good or import it, but not both. b) Consumers gain from the increased variety of goods that trade makes available. c) Countries as a whole must gain from trade. d) A country can only hurt itself by using government policies to promote exports.
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Step 1: The new trade theory suggests that consumers benefit from the increased variety of goods that trade makes available. Show more…
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