Elaborate on the alternative New Trade Theories. Please explain each of them and specifically indicate the main contributions to the understanding of the explanation of trade flows. Hint: make sure to discuss the issues of First Mover Advantage, Location Specific Advantage, Economies of Scale, and Imperfect Competition.

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Match each trade theory below to its rationale for international trade  Theory of Comparative Advantage         Heckscher-Ohlin Theory Product Life Cycle Theory New Trade Theory   match to:   cost reductions due to large scale production differences in productivity demand and market conditions differences in endowments

To focus on producing one thing to improve productivity is known as: a) International trade b) Supply and Demand c) Absolute Advantage d) Specialization

1) What are the key differences between the theory of multinational enterprises and conventional trade theory?

Indian exports of computer software have grown rapidly since the early 2000s. In the early 2000s, the cost to employ programmers in India was about half the cost of programmers with comparable skills in the United States. In 2013 the cost in India was about two-thirds the cost in the United States. What trade theory or theories help us to understand the change?

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Should the U.S. government promote trade policies that benefit somecompanies or industries while potentially harming others? Why or why not?

If a country closes off to trade and notices that the number of firms in an industry doubles in size, what economic theory would help us explain this phenomenon? A. Stolper-Samuelson. B. Melitz. C. Ricardian. D. Cournot.