Question

    According to Linder's Overlapping Demand Theory, what

    factor is crucial for international trade between similar countries?
    A Countries with identical technology levels are more likely to trade with each other. Correct Answer Incorrect Answer
    B countries with similar levels of economic development are more likely to trade with each other due to overlapping consumer demands. Correct Answer Incorrect Answer
    C Countries with significantly different economic structures are more likely to trade with each other. Correct Answer Incorrect Answer
    D Countries with different currency systems are more likely to trade with each other. Correct Answer Incorrect Answer

    Solution

    The correct answer is B

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