Final answer:
It is not necessarily easier for a small business to go global by finding distributors than by being a contractor in the supply chain due to the complexity of international trade and resource demands. International trade enables economies of scale and competition which broadens consumer choice. Long-term planning allows businesses to expand production and enter new markets.
Step-by-step explanation:
The statement posits that it is easier for a small business to go global by finding distributors than by becoming a contractor in the supply chain. However, the assertion overlooks the complexity and resource demands involved in international trade agreements, logistics, and market penetration, which can be quite challenging for small businesses. On the other hand, being a contractor in a supply chain could mean more direct collaborations with other businesses and potentially less financial and logistical strain.
International trade can enable a small economy to benefit from economies of scale and competition. For example, a country might have only a few large factories capable of producing goods like automobiles to meet local demand, limiting choice and competition. When these products are traded internationally, it allows for a variety of products from several producers, promoting competition and offering consumers a wider range of choices.
On the supply side of markets, expanding production is generally more feasible in the long term. In the short term, facing the immediate costs and challenges of scaling up production can be quite significant. But over a few years, investments in new factories, hiring, and opening new stores can be planned and executed more smoothly, paving the way for small businesses to enhance their offerings and possibly expand globally.