Question

how does the new trade theory help us to understand why the united states is dominant in the world market for commericial aircraft exports?

Answer 1

Answer:

If the United States' trade partner reduces barriers as a result of a trade agreement, U.S. exports will likely increase, which expands U.S. production and GDP. And suppliers to a firm that gains additional sales through exports will likely also increase their sales to that firm, thereby increasing GDP further.