Imagine Scale Economies Were Not Only External to Firms, but Were

question 4

Essay

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.

---

Definitions:

Group Members

Individuals who belong to a specific group or organization, sharing common goals, interests, or characteristics.

Social Networks

Structures made up of individuals or organizations that are connected by one or more specific types of interdependency, such as friendship, kinship, common interest, financial exchange, likes, dislikes, knowledge, or prestige.

Organizational Environment

The external forces that affect an organization’s operation, including economic, legal, technological, and social factors.

Non-Jew

A person who does not follow Jewish religion or is not of Jewish ethnicity.