What does the theory of dynamic comparative advantage primarily explain?

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It clarifies why certain countries adopt industrial policies to nurture emerging firms with competitive potential.It fails to account for strategic rivalry between companies like Boeing and Airbus.It is simply another term for Ricardo's theory of comparative advantage.None of the above choices are accurate.

Explanation

The theory of dynamic comparative advantage explains why some nations implement industrial policies aimed at supporting new firms that could become competitive in the future. It differs from Ricardo's traditional comparative advantage theory and does not fully address strategic competition between firms such as Boeing and Airbus.