Answer:
The correct answer is D. New trade .
Step-by-step explanation:
The "new" theory of international trade. These theories are based on imperfect competition. Among them are the following:
- Opportunity Cost Theory, by G. Haberler. Work is not the only resource nor is it homogeneous. It is based on the opportunity cost of a good.
- Monopolistic Competition Model, by Paul Krugman.
The "latest" recent developments that incorporate differences between companies. In this category, differences between companies are considered to understand this area. Among them are:
- Conclusions of Bernard, Redding and Schott. Increase the productivity of the entire industry. The expansion of the production of the exporting companies implies an increase in the demand for factors and an increase in the price of the inputs.
- R. E. Baldwin and R. Forslid. Liberalization brings welfare gains.