What do "economies of scale" and "experience curve" enable for a nation's industries in the context of international trade?

The idea behind "economies of scale" and the "experience curve" relates to how industries can lower their costs of production as they grow in size and gain experience. Economies of scale refer to the cost advantages that enterprises obtain due to their scale of operation, with the cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output. The experience curve, on the other hand, describes the phenomenon where the cost of producing a good decreases as firms gain experience in production over time, leading to enhanced efficiencies and reduced operational expenses.

In the context of international trade, these concepts enable a nation's industries to compete effectively in global markets by becoming low-cost producers. As firms grow and improve their production processes, they can lower their costs without necessarily having abundant resources. This ability to produce at a lower cost allows them to offer competitive prices, which is crucial in international markets where they face competitors from around the world.

The other choices do not align with the fundamental principles of economies of scale and the experience curve. For example, increasing production costs to improve quality contradicts the objective of these concepts, which focuses on cost reduction. Expanding the product range could be a strategy but is not the primary benefit derived from these