Which of the following statements regarding the New Trade Theory is accurate?
- It emphasizes economies of scale and network effects in trade.
- It challenges the traditional view that comparative advantage is the sole driver of trade.
- It suggests that trade patterns are influenced by historical and institutional factors.
- It completely disregards the impact of tariffs and trade barriers.
1
1, 2 and 3
2
2, 3 and 4
3
2 and 4
4
Only 3
5
Question Not Attempted