Product Differentiation and Internal Economies of Scale Yield Gains from Trade

question 34

Multiple Choice

Product differentiation and internal economies of scale yield gains from trade in the form of

• A) lower production costs and a greater variety of goods.
• B) higher profits and lower trade costs.
• C) the proximity-concentration effect.
• D) a proliferation of competitive firms.
• E) the substitution of immigration for foreign direct investment.

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Definitions:

Jay Lorsch

is a prominent figure in organizational behavior and corporate governance, known for his contributions to understanding organizational structure and effectiveness.

Organic Designs

An organizational structure characterized by flexibility, decentralized decision-making, and a lack of rigid protocols.

Mechanistic Designs

Organizational structures characterized by rigid hierarchies, clear job responsibilities, and a focus on efficiency and predictability.

Mechanistic Organizations

Highly structured, hierarchical companies with centralized decision-making and strict rules and procedures.