International Economic Relations Economies of Scale, Imperfect Competition, and International Trade


Economies of Scale and International Trade


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Prezentatisya 6.1

Economies of Scale and International Trade

  • Graphical explanation for Increasing returns to scale

Economies of Scale and International Trade

  • So, what country specializes in what part of the production?
    • As for H-O theory it is the matter of Factor Abundance of the country and Factor Intensity which drives countries to specialize.
    • But, In the real world, this may result from historical accident. Something gives a particular location an initial advantage in a particular industry, and this advantage gets “locked in” by economies of scale even after the circumstances that created the initial advantage are no longer relevant.
      • For example, The financial centers in London and New York are clear examples. London became Europe’s dominant financial center in the 19th century, when Britain was the world’s leading economy and the center of a world-spanning empire.
      • New York became America’s financial center thanks to the Erie Canal, which made it the nation’s leading port. It has retained that role even though the canal currently is used mainly by recreational boats.
      • Silicon Valley’s existence may owe a lot to the fact that a couple of Stanford graduates named Hewlett and Packard decided to start a business in a garage in that area. Bangalore might not be what it is today if vagaries of local politics had not led Texas Instruments to choose, back in 1984, to locate an investment project there rather than in another Indian city.

Economies of Scale and International Trade

  • Miqyos iqtisodiyoti, shuningdek, ikkita ichki (firma darajasida) va tashqi (sanoat darajasi) iqtisodiyotiga aniq ajratilishi kerak:
  • Miqyosning ichki tejamkorligi birlik uchun sarflanadigan xarajatlar alohida firma hajmiga bog'liq bo'lganida paydo bo'ladi, lekin bu sanoatning narxiga bog'liq emas.
  • Ya'ni, ichki iqtisodlar o'rtacha xarajatlarning ishlab chiqarishning nisbatan katta diapazoniga nisbatan pasayishi deb ta'riflanadi. Amalda, bu yirik firmalarga olib keladi, chunki hajmi o'rtacha o'rtacha xarajatlar shaklida raqobatdosh ustunlikni beradi.
  • Kattaroq firma bir necha xil sabablarga ko'ra o'rtacha o'rtacha narxga ega bo'lishi mumkin:
  • (1) Har qanday ishlab chiqarish sodir bo'lishidan oldin ko'pincha oldingi (doimiy) xarajatlar mavjud.
  • Misol: samolyot va avtomobilsozlik sohasida loyihalashtirish va rivojlantirish narxi
  • (2) Ba'zan katta hajmda ishlaydigan katta, ixtisoslashgan kapital uskunalardan foydalanishning afzalliklari bor.
  • Misol: yuqori tezlikda avtomatlashtirilgan plomba va muhr mashinalaridan foydalanish yoki shkala qaytishini oshirish.

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