Large countries have an advantage over small countries in technology-intensive and capital-intensive industries,because:
A)They can influence the rest of the world's technical standards
B)Small markets discourage ambition among the firms that serve them
C)A large home market facilitates exploitation of scale economies
D)Large countries tend to have superior educational systems

Question

Quizplus · Accepted Answer

A large home market facilitates exploitation of scale economies, which means that companies can produce a larger quantity of their product at a lower cost per unit, making them more competitive in the international market. Small markets may not provide enough demand to justify the high costs of research and development, which can lead to a lack of investment and development in technology-intensive and capital-intensive industries. While the other options (A, B, and D) are also potential advantages for large countries, they do not directly relate to technology and capital-intensive industries.

Large Countries Have an Advantage Over Small Countries in Technology-Intensive