CA Foundation Exam > CA Foundation Questions > External economies can be achieved through:a)...
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External economies can be achieved through:
- a)Foreign trade only
- b)Superior managerial skill
- c)Extension of transport and credit facilities
- d)External assistance.
Correct answer is 'C'. Can you explain this answer?
Most Upvoted Answer
External economies can be achieved through:a)Foreign trade onlyb)Super...
External economies of scale (EEoS)
External economies of scale occur outside of a firm but within an industry.
For example investment in a better transport network servicing an industry will resulting in a decrease in costs for a company working within that industry
Investment in industry-related infrastructure including telecommunications can cut costs for all Another example is the development of research and development facilities in local universities that several businesses in an area can benefit from
Likewise, the relocation of component suppliers and other support businesses close to the centre of manufacturing are also an external cost saving.
Agglomeration economies may also result from the clustering of businesses in a distinct geographical location e.g. software in Silicon Valley or investment banks in the City of London
Community Answer
External economies can be achieved through:a)Foreign trade onlyb)Super...
External economies refer to the benefits that accrue to an industry or firm as a result of the growth of other industries or firms in the same area. These benefits are external to the firm, meaning that they are not directly under the control of the firm, nor are they reflected in the market price of the firm's goods or services. External economies can be achieved through various means, including:
1. Extension of transport facilities: Better transport facilities, such as highways, railways, and ports, can help to reduce transportation costs for firms in an area, making it easier and cheaper for them to move goods and services. This can lead to lower costs for firms, which can help to improve their competitiveness and profitability.
2. Extension of credit facilities: Improved access to credit can help firms to finance their operations and invest in new equipment and technologies. This can help firms to become more efficient and productive, which can help to reduce costs and increase output.
3. Superior managerial skill: Better management practices can help firms to become more efficient and productive. This can help to reduce costs and increase output, which can help firms to become more competitive and profitable.
4. External assistance: External assistance, such as government grants or subsidies, can help firms to invest in new equipment and technologies, which can help to improve their productivity and competitiveness. This can help firms to become more efficient and profitable, which can lead to further growth and development in the area.
In conclusion, external economies can be achieved through various means, including the extension of transport and credit facilities, the development of superior managerial skills, and external assistance. These benefits can help firms to become more competitive and profitable, which can lead to further growth and development in the area.
1. Extension of transport facilities: Better transport facilities, such as highways, railways, and ports, can help to reduce transportation costs for firms in an area, making it easier and cheaper for them to move goods and services. This can lead to lower costs for firms, which can help to improve their competitiveness and profitability.
2. Extension of credit facilities: Improved access to credit can help firms to finance their operations and invest in new equipment and technologies. This can help firms to become more efficient and productive, which can help to reduce costs and increase output.
3. Superior managerial skill: Better management practices can help firms to become more efficient and productive. This can help to reduce costs and increase output, which can help firms to become more competitive and profitable.
4. External assistance: External assistance, such as government grants or subsidies, can help firms to invest in new equipment and technologies, which can help to improve their productivity and competitiveness. This can help firms to become more efficient and profitable, which can lead to further growth and development in the area.
In conclusion, external economies can be achieved through various means, including the extension of transport and credit facilities, the development of superior managerial skills, and external assistance. These benefits can help firms to become more competitive and profitable, which can lead to further growth and development in the area.
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External economies can be achieved through:a)Foreign trade onlyb)Superior managerial skillc)Extension of transport and credit facilitiesd)External assistance.Correct answer is 'C'. Can you explain this answer?
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External economies can be achieved through:a)Foreign trade onlyb)Superior managerial skillc)Extension of transport and credit facilitiesd)External assistance.Correct answer is 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about External economies can be achieved through:a)Foreign trade onlyb)Superior managerial skillc)Extension of transport and credit facilitiesd)External assistance.Correct answer is 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for External economies can be achieved through:a)Foreign trade onlyb)Superior managerial skillc)Extension of transport and credit facilitiesd)External assistance.Correct answer is 'C'. Can you explain this answer?.
External economies can be achieved through:a)Foreign trade onlyb)Superior managerial skillc)Extension of transport and credit facilitiesd)External assistance.Correct answer is 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about External economies can be achieved through:a)Foreign trade onlyb)Superior managerial skillc)Extension of transport and credit facilitiesd)External assistance.Correct answer is 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for External economies can be achieved through:a)Foreign trade onlyb)Superior managerial skillc)Extension of transport and credit facilitiesd)External assistance.Correct answer is 'C'. Can you explain this answer?.
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