Why does most of the worlds' international trade take place between similar developed economies?© BrainMass Inc. brainmass.com March 4, 2021, 8:10 pm ad1c9bdddf
One of the major reasons that international trade may take place is the existence of economies of scale (also called increasing returns to scale) in production. Economies of scale means that production at a larger scale (more output) can be achieved at a lower cost (i.e. with economies or savings). When production ...
The expert determines why most of the worlds' international trade takes place between similar developed economies.