Which of the following theories suggests that first-mover advantage is significant in the export of a good?
A) product life-cycle theory
B) Ricardo's theory
C) new trade theory
D) theory of comparative advantage

Question

Quizplus · Accepted Answer

New trade theory suggests that a country may predominate in the export of a good simply because it was lucky enough to have one or more firms among the first to produce that good. Because they are able to gain economies of scale, the first movers in an industry may get a lock on the world market that discourages subsequent entry.

Which of the Following Theories Suggests That First-Mover Advantage Is