Company Z was the fist to research, develop, and produce, an innovative consumer product. The other competitors took years to follow Company Z’s…

Company Z was the fist to research, develop, and produce, an innovative consumer product. The other competitors took years to follow Company Z’s lead, but to no avail: by the time they reacted Company Z had a strong brand, loyal customers, and what seemed like an inpenetrable market share. Company Z rules the world in this product, in spite of outher countries being naturally more suited to succeed in its production. This situation exemplifies _______________ concept the importance of ____________ in international trade:

new trade theory’s; factor endowments

new trade theory’s; first-mover advantage

Ricardo’s; diminishing marginal returns

Michael Porter’s; factor endowments

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