Q. Which among the following economists is best known for his concepts of New Trade Theory and New Economic Geography?
Answer: Paul Krugman
Notes: Paul Krugman is an American economist and Nobel laureate who is known for his work on international trade and economic geography. His "new trade theory" is a branch of economics that focuses on the role of increasing returns to scale and network effects in the global economy. New trade theory, which was developed in the 1980s and 1990s, challenges the traditional assumptions of neoclassical trade theory and suggests that differences in the cost of producing goods and services can have a significant impact on the patterns of international trade. According to new trade theory, countries that have a comparative advantage in the production of a particular good or service will tend to export that good or service, while importing other goods and services from other countries. This theory has important implications for policy makers and has been widely discussed and debated in the economics literature.
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