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Which principle or theory advocated exporting and attaining access to a larger global market with the purpose of increasing economies of scale?

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Final answer:

Dynamic Comparative Advantage is the theory that advocates for international trade to increase economies of scale, improve competition, and provide greater variety for consumers.

Step-by-step explanation:

The principle or theory that advocated exporting and obtaining access to a larger global market for the purpose of increasing economies of scale is Dynamic Comparative Advantage. The concept of economies of scale is crucial in international trade, as it allows large producers to supply an entire country, thus reducing production costs and increasing efficiency. However, without international trade, consumers would have limited choices, and competition among producers would be nearly nonexistent. Engaging in international trade enables countries to enjoy the benefits of economies of scale while also introducing competition and variety, leading to innovation and better responsiveness to consumer demands. For instance, large automobile factories in different countries can sell their products globally, which increases competition. As seen in the U.S. automobile market, the presence of foreign competitors like Toyota, Honda, and BMW forces domestic producers to improve their offerings, leading to better-quality products overall.

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