The most referred demand oriented model of international trade is the Overlapping Demands Model. The Model was developed by the Swedish economist Staffan Linder in 1961 (I). According to Linder, much of the current international trade involves trade in manufactured commodities,and demand conditions constitute a big importance in explaining international trade patterns (II); the main determinant of the demand preferences of the domestic consumers is their income levels (III), and firms within a country produce commodities for the domestic market, and they are motivated to produce more (not less) when the market is enlarged (IV). The correct answer is C.