Consider each scenario in the following table and determine which theory best explains the trade pattern described. 1. Dynamic Comparative Advantage
2. Product Life Cycle Theory
3. Intra-Industry Specialization

a. Since the turn of the century, nearly all X-ray machines purchased by hospitals have been made in Alloway. However, engineers in Osteoville recently designed an X-Ray machine that produces much more accurate results, leading to fewer malpractice cases and more reliable diagnoses. These new X-ray machines quickly become the industry standard. As a result of this, the production of X-ray machines is thriving in Osteoville, while firms in Alloway lose market share and begin trying to develop a new source of advantage.
b. Nekopia and Julerton both produce silver jewelry, but because of their native ancestry, they create different designs on their jewelry, Residents of both countries like to accessorize with a variety of jewelry designs, so both countries are able to export silver jewelry.
c. In the nation Of Pescovia, the fishing industry has suffered when trying to compete internationally because many of the Pescovians Who are capable Of fishing successfully chose to pursue more stable jobs as computer programmers. The Pescovian government passed a law to grant full health insurance to all Pescovian fisherfolk. In response, many of the skilled Pescovians chose to abandon their jobs programming and began to fish. As the fishing industry grew, thanks to an influx Of skilled fisher-folks, pescovia became a major international exporter of fish.