Final answer:
The Export Trading Company Act allows producers of similar products to form export trading companies to promote the export of their goods and can help achieve economies of scale in international trade.
Step-by-step explanation:
The Export Trading Company Act indeed allows producers of similar products to join together to form export trading companies. This act was designed to facilitate the formation of these companies to promote the export of domestic goods, by granting antitrust law immunity under certain circumstances and by providing some services through the Department of Commerce. This act helps small and medium-sized businesses enter and succeed in the global marketplace.
When relating to international trade and economies of scale, producers in even a small economy can benefit significantly. For instance, if a country specializes in producing a certain product or service, it can achieve economies of scale, which may lower the costs and increase efficiency. At the same time, by engaging in international trade, this country can benefit from a competitive market and access a wide variety of goods and services, enabling consumer choice and fostering innovation.