New Trade Theory

New Trade Theory: Definition, Meaning, Assumptions, and Key Points

What is New Trade Theory? The New Trade Theory (NTT) is an international trade theory developed by Paul Krugman, a Nobel prize winner that explains the two main points economies of scale and first-mover advantage. NTT emerged in the late 1970s, and a number of economists pointed out the ability of firms to attain economies of …

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