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Which of the following describes a trade theory that states an economic and strategic advantage is gained by being the first company to enter an industry?A first-mover advantage is the economic and strategic advantage gained by being the first company to enter an industry. It creates a barrier to entry for potential rivals and may allow a country to dominate in a product.
Which of the following best describes the economic theory of mercantilism?Mercantilism was based on the idea that a nation's wealth and power were best served by increasing exports and reducing imports. It's characterized by the belief that global wealth was static and that a nation's economic health relied heavily on its supply of capital.
Which of the following best describes free trade?Detailed Solution. Free trade is a policy that is made between two nations or even more. In free trade areas, there are no import tariffs or quotas on products. This policy permits the unlimited and unrestricted import or export of goods and services between those partner nations.
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