How is the opening up of trade and investment between -...

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Chapter 5How is the opening up of trade and investment between eastern and western Europe likely to affectthe location of industries within Europe that have (a) substantial economies of scale; (b) little or noeconomies of scale?Answer
Chapter 5. Name some industries where external economies of scale are gained. What are the specific externaleconomies in each case?
Various parts of the engineering industry: pool of qualified and experienced labour, access tospecialist suppliers, possible joint research, specialised banking services.Would you expect external economies to be associated with the concentration of an industry in aparticular region?
Chapter 5If factor X costs twice as much as factor Y (Px/Py= 2), what can be said about the relationship betweenthe MPPs of the two factors if the optimum combination of factors is used?
Could they ever slope upward to the right? Explain your answers.
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