Final answer:
Economies of scope are achieved through economies of agglomeration, optimization of production scale, and efficient splitting of the value chain, resulting in lower costs and increased trade benefits.
Step-by-step explanation:
The only way economies of scope can be achieved is from the economies of agglomeration and by working to minimize or counterbalance the corresponding diseconomies. By leveraging the benefits of having diverse and related products, a company can optimize scale of production and spread out costs, such as marketing, manufacturing, and distribution, across multiple products rather than just one. For example, a business like Costco or Walmart utilizes this approach by selling a wide range of products in vast quantities, allowing them to offer lower prices due to reduced costs per unit.
In the case of intra-industry trade, economies of scope are achieved through specialized learning and a high degree of specialization, which allows for an efficient splitting up of the value chain, where various stages of producing a good occur in different countries harnessing their specific comparative advantages.