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Business, 18.07.2019 10:20 Anliz0179

What effect does a trade bloc have on scales of production? when the markets of the various countries in the trade bloc are joined, firms within those countries are presented with larger markets than they had before the trade bloc was created, and those larger markets present opportunities for firms within the trade bloc countries to expand to take advantage of additional scale economies. when the markets of the various countries in the trade bloc are joined, there is more competition within the countries in the trade bloc, and that competition discourages firms from taking advantage of scale economies. scale economies are not affected by trade blocs because trade blocs focus on affairs internal to the countries that are part of the trade bloc. as trade blocs exclude firms from outside of the trade bloc countries from trading with trade bloc countries, scale economies actually are lessened within the trade bloc countries?

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