International Trade
BA Course
UCL, SSEES
Lecture 6: External Economies of Scale
Idil Uz Akdogan
,Lecture Overview
• Types of economies of scale
• Economies of scale and market structure
• The theory of external economies
• External economies and international trade
• Dynamic increasing returns
, Introduction
The models of comparative advantage thus far assumed
constant returns to scale:
• When inputs to an industry increase at a certain rate, outpu
increases at the same rate.
• If inputs were doubled, output would double as well.
BA Course
UCL, SSEES
Lecture 6: External Economies of Scale
Idil Uz Akdogan
,Lecture Overview
• Types of economies of scale
• Economies of scale and market structure
• The theory of external economies
• External economies and international trade
• Dynamic increasing returns
, Introduction
The models of comparative advantage thus far assumed
constant returns to scale:
• When inputs to an industry increase at a certain rate, outpu
increases at the same rate.
• If inputs were doubled, output would double as well.
