The theory of overlapping demands predicts that trade in manufactured goods is unimportant for countries with very different:
A) Tastes and preferences
B) Expectations of future interest rate levels
C) Per-capita income levels
D) Labor productivities

Question

Quizplus · Accepted Answer

The theory of overlapping demands, proposed by economist Staffan Linder, suggests that countries with similar per-capita income levels are more likely to trade manufactured goods with each other because they have similar consumer demands.

The Theory of Overlapping Demands Predicts That Trade in Manufactured