Final Answer:
The given statement Linder's theory of overlapping demand explains the direction of trade for minerals and agricultural products is False.
Step-by-step explanation:
Linder's theory of overlapping demand does not specifically explain the direction of trade for minerals and agricultural products. Linder's theory primarily focuses on explaining the direction of international trade based on similarities in consumer preferences and income levels between trading partners. According to Linder, countries with similar income levels and consumer preferences are more likely to engage in trade with each other.
In the context of minerals and agricultural products, factors such as resource endowments, comparative advantage, and technological capabilities often play a more significant role in determining the direction of trade. For instance, a country with abundant agricultural resources may specialize in agricultural production and trade with nations that have a comparative advantage in other sectors. Similarly, a country rich in mineral resources may export minerals to countries with less access to these resources.
Understanding the nuances of international trade theories is crucial for policymakers and economists to formulate effective trade policies and strategies. Linder's theory, while valuable in certain contexts, does not directly address the specific determinants of trade in minerals and agricultural products.