For each of the following examples, explain whether it is a case of external or internal economies

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For each of the following examples, explain whether it is a case of external or internal economies of scale:
a. Most musical wind instruments in the United States are produced by more than a dozen factories in Elkhart, Indiana.
b. All Hondas sold in the United States are either imported or produced in Marysville, Ohio.
c. All airframes for Airbus, Europe’s only producer of large aircraft, are assembled in Toulouse, France.
d. Hartford Connecticut, is the insurance capital of the northeastern United States.

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International Economics Theory and Policy

ISBN: 978-0273754206

9th Edition

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

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