Traditional Culture Encyclopedia - Traditional virtues - What is the Economy of Scale Trade Doctrine? Please, please, please.
What is the Economy of Scale Trade Doctrine? Please, please, please.
The trade theory of economies of scale is by the famous economist Paul Krugman (Paul Krugman) in and Elhanan (Helpman Elhanan) co-authored the book "market structure and foreign trade" (1985), the main idea is: increasing returns to scale for the international trade directly provides the basis for the production of a particular product when the increasing returns to scale, the cost advantage is achieved as the production scale increases. With the expansion of the scale of production, the unit cost of the product decreases and achieve cost advantage, which leads to specialization and export of this product. Economies of Scale (Economies of Scale) refers to the beginning of the expansion of production, the enterprise due to the expansion of the scale of production to improve economic efficiency.
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