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Consider the statement below. In order to ensure economic growth and stability on a global scale, countries must reduce or eliminate all trade barriers. A) an observation B) an opinion C) a scientific conclusion D) a fact

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Answer 1

In order to ensure economic growth and stability on a global scale, countries must reduce or eliminate all trade barriers. It is an observation.

How do economies of scale work with globalization?

The phenomenon of declining marginal costs with each new unit of output is referred to as economies of scale. As a business specialized and can manufacture more things with less and fewer input costs, economies of scale begin to take place.

According to economic theory, specialization and the division of labour naturally lead to economies of scale. It is one of the main forces for economic expansion. Although there is a maximum level of efficient output for every given input, businesses do not always experience economies of scale; occasionally, operations may go too far and result in diseconomies of scale.

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