Determining whether external economies of scale are achieved

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If the production of athletic shoes is an industry where external economies of scale are important determinants of costs of production, how would that make it more difficult for China to replace Korea as the world's leading producer? If China nevertheless were able to become the top producer, would you expect all production to take place in a single province? What role does proximity among producers play in determining whether external economies of scale are achieved?

Reference no: EM131249027

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