It Is Possible That Trade Based on External Scale Economies

question 5

Essay

It is possible that trade based on external scale economies may leave a country worse off than it would have been without trade. Explain how this could happen.

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Definitions:

Preoperational

The second stage in Piaget's theory of cognitive development, marked by the emergence of symbolic thought but lacking in the understanding of logic or operations.

Concrete Operational

A stage in Piaget's theory of cognitive development, typically occurring between ages 7 and 12, where children gain the ability to think logically about concrete objects and events.

Formal Operations

The final stage in Piaget’s theory of cognitive development, characterized by the ability to think abstractly, logically, and systematically.

Sensorimotor Stage

The first of Piaget's developmental stages, where infants from birth to about 2 years old learn through interacting with their environment.