Large countries have an advantage over small countries in technology and capital-intensive industries, because:
A)They may influence the rest of the world's technical standards
B)Small markets keep firms from being too ambitious
C)A large home market means development costs can be recovered more quickly and new specialist service providers evolve more rapidly
D)The population of small countries often has a low level of education

Question

Quizplus · Accepted Answer

Large countries with a large domestic market have the advantage of being able to recover development costs more quickly and attract more specialized service providers. This is because there is a larger pool of potential customers and a greater potential for economies of scale. Additionally, large countries may have more influence over global technical standards due to their size and market power. Small markets may limit the ambitions of firms, but this is not a significant advantage over the benefits that large markets provide. The education level of the population is also not directly related to the advantage that large countries have in technology and capital-intensive industries.

Large Countries Have an Advantage Over Small Countries in Technology