Swiss Competition
Multiple choice question on trade benefits from economics - Help plsss?
Suppose that Swatch, a Swiss company that manufactures millions of watches, is able to export its products to many nations and charge forgein consumers a relatively low amount for a watch. This is because forgein economies' openness to free trade allows Swatch to produce watches more efficiently, Swatch can reduce production costs per watch by producing with larger factories when facing a larger market. Which one of the following benefits of international trade describes this free-trade benefit that Swatch enjoys?
1Increased variety of goods
2.Lower costs through economies of scale
3.Increased competition
4.Enhanced flow of ideas
2.Economies of scale refers to the decreased per unit cost as output increases
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