According to the trade theory of Staffan Linder trade tends to be most pronounced in manufactured goods when trading countries have ?
Correct answer: C. similar per-capita incomes
- A. similar endowments of natural resources
- B. similar levels of technology
- C. similar per-capita incomes
- D. similar wage levels
Explanation
Linder’s theory emphasizes demand similarity: countries with similar per-capita incomes tend to want similar manufactured products and therefore trade more in them. Similar resource endowments are associated more directly with other trade theories.
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