Economies more open to foreign trade are more efficient in production partly because:

Question

Quizplus · Accepted Answer

In larger markets, economies of scale can occur, leading to more efficient production. This is one of the reasons why economies more open to foreign trade tend to be more efficient in production. Options A and D are incorrect because foreign aid and property rights are not directly related to production efficiency. Option B is incorrect because it makes a generalized and unsupported claim that foreign producers are more productive.

Economies More Open to Foreign Trade Are More Efficient in Production