Economies of Scale

Economies of Scale

Economies of Scale and International Trade Economy

In relation to international trade economy, Christopher Mark (1993) provided the following definition of Economies of Scale: (Also known as increasing returns to scale.) Cost savings that occur in production processes where higher output levels allow a firm to employ more productive technology –so that doubling inputs, for example, will result in more than a doubling of output. Economies of scale can be a source of international trade flows apart from comparative advantage if productdifferentiation exists and individual countries are unable to produce a full range of differentiated manufactures themselves (see intra- industry trade).

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See Also

  • Enterprise
  • Joint Enterprise
  • Joint Venture

Hierarchical Display of Economies of scale

Agri-Foodstuffs > Production > Production policy > Production capacity
Business And Competition > Accounting > Management accounting > Costing > Production cost

Economies of scale

Concept of Economies of scale

See the dictionary definition of Economies of scale.

Characteristics of Economies of scale

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Resources

Translation of Economies of scale

Thesaurus of Economies of scale

Agri-Foodstuffs > Production > Production policy > Production capacity > Economies of scale
Business And Competition > Accounting > Management accounting > Costing > Production cost > Economies of scale

See also