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If a Scale Economy Is the Dominant Technological Factor Defining

question 13

Essay

If a scale economy is the dominant technological factor defining or establishing comparative advantage, then the underlying facts explaining why a particular country dominates world markets in some product may be pure chance, or historical accident. Explain, and compare this with the answer you would give for the Heckscher-Ohlin model of comparative advantage.


Definitions:

Environmental Factors

External elements such as climate, geography, and natural resources that affect individuals, businesses, and societies.

Strategic Choices

Decisions made by an organization that affect its ability to achieve objectives and gain competitive advantage.

Technological Factors

Elements related to innovations, advancements, or changes in technology that can impact businesses and societies.

Organization Design

involves structuring the organizational framework to effectively and efficiently achieve business goals and adapt to changes.

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