Which of the following reasons explains why many countries with relatively small populations import automobiles from Japan,U.S. ,and Germany rather than produce them domestically?

Question

Quizplus · Accepted Answer

Economies of scale allow bigger countries like Japan, the U.S., and Germany to produce automobiles at a lower cost per unit, making them more competitive in the global market. Small countries may not have the sufficient resources or market size to achieve such economies of scale, making it more economically efficient for them to import rather than produce domestically.

Which of the Following Reasons Explains Why Many Countries with Relatively