Answer to Question #227961 in Economics for MabZ

Question

Explain the difference between “the national efficient level” for one country and the “global

efficient level” for two countries (in bilateral agreements). Illustrate your answer by means of a graph.

Answer 1

Global efficiency is about achieving cost economies and revenue maximization through global integration and response to customer needs in varied markets.

The national efficiency rule is an economic paradigm where all producers in a global economy specialize in the production of one good.