Gains from Macc production methods

Trade also promotes economic progress by making it possible for firms to lower their perunit costs with mass production. Say a nation isolated itself and refused to trade with other countries. In an economy like this, self-sufficiency and small-scale production would be the norm. If trade were allowed, however, the nation’s firms could sell their products to customers around the world. This would make it feasible for the firms to adopt more efficient, large-scale production processes. Mass production often leads to labor and machinery efficiencies that increase enormously the output per worker. But without trade, these gains could not be achieved.