According to the theory of international trade known as the “Linder hypothesis,” trade tends to occur…
The Linder hypothesis links trade in manufactured goods to similarity in demand patterns. Countries with similar incomes tend to have similar consumer preferences,…
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According to the theory of international trade known as the “Linder hypothesis,” trade tends to occur between Countries with :
Answer and explanation
Correct answer B
The Linder hypothesis links trade in manufactured goods to similarity in demand patterns. Countries with similar incomes tend to have similar consumer preferences, encouraging trade between them.
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Gujarat SET (GSET)