Question

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 increases variety of goods that trade makes available.
c) Countries as a while must gain from trade.
d) A country can only hurt itself by using government policies to promote exports.​

Answer 1

Answer:

d) A country can only hurt itself by using government policies to promote exports.

Explanation:

please Make As Brainlist Answer

Answer 2

Option c is the correct answer.

Conclusion can be given to the new trade theory is that Consumers gain from the increased variety of goods that trade makes available.

1. There is monopolistic competition in the market as per new trade theory.
2. This makes producers compete on advertisement costs and other factors.
3. In this case. The country can not only export in such case but also import because the goods sold are not perfect substitutes of each other. This allows for a great variety for consumers.