Imagine scale economies were not only external to firms, but were also external to individual countries
That is, the larger the worldwide industry (regardless of where firms or plants are located), the cheaper would be the per-unit cost of production. Describe what world trade would look like in this case.
Presumably each country would specialize in some component of the final product. This would result in in a high volume of intra-industry trade.
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In the United States, the productive factor that, as a group, receives the largest fraction of the nation's total income is
A) labor. B) consumption goods and services. C) land. D) entrepreneurshi
Suppose the price of one euro is fixed at $1.00. A Dutch oil company discovers new oil reserves in the North Sea and offers the oil for sale. If a flexible system is allowed, then what is the impact on the foreign exchange rate?
a. A dollar becomes worth one euro. b. The euro depreciates relative to the dollar. c. A dollar becomes worth two euros. d. The euro appreciates relative to the dollar.
A start-up company sets goals and standards for themselves based on the performance of their competitors. This is an example of
a. groupthink b. mbwa c. swot d. benchmarking
Ceteris paribus, which of the following would generally cause an increase in the demand curve for new automobiles?
A. The new models being perceived as ugly compared with old models. B. Consumer expectations that the price of new automobiles will be lower next year. C. A decrease in the price of new automobiles. D. An increase in consumers' income.