Answer:
New trade theory
Explanation:
New Trade Theory can be regarded as an economic theory, that helps in giving prediction about pattern of
international trade. It was set up arround 1970s. It gives explanation on
the reason why we usually have comparable products from countries that is not ours even though we have the product been produced in our country. It should be noted that New trade theory stresses that in some cases, countries specialize in the production and export of particular products not because of underlying differences in factor endowments, but because in certain industries the world market can support only a limited number of firms
