Final answer:
Inherent factors that benefit small businesses include the ability to remain flexible and innovative, an emphasis on variety, and management expertise. Emphasizing quantity is not typically an advantage for small businesses, which can differentiate themselves in international trade through unique offerings.
Step-by-step explanation:
The inherent factors that work in favor of small businesses include their ability to remain flexible and innovative, an emphasis on variety, and the benefit of management expertise. Small businesses are often able to adapt quickly to changes in the market and can innovate due to shorter decision-making processes. These businesses can also provide a wide range of products and services, which is often appreciated by a niche market that values diversity and specialization over mass-produced items. Additionally, small businesses may have management with strong expertise in their specific industry.
However, it's important to note that emphasizing quantity is typically not an inherent advantage for small businesses. Because small businesses often lack the economies of scale that larger businesses enjoy, they are usually more successful when they focus on quality rather than quantity.
In terms of international trade, small businesses might not always be able to benefit from economies of scale or comparative advantage, yet they can still find success by focusing on core competencies and offering unique products and services that distinguish them from competitors, both locally and globally.