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1. If there are internal economies of scale, why would it ever make sense for a ?rm to produce the same good in more than one production facility?

2. Most ?rms in the apparel and footwear industries choose to outsource production to countries where labor is abundant (primarily, Southeast Asia and the Caribbean)-but those ?rms do not integrate with their suppliers there. On the other hand, ?rms in many capital-intensive industries choose to integrate with their suppliers. What could be some differences between the labor-intensive apparel and footwear industries on the one hand and capital-intensive industries on the other hand that would explain these choices?

Microeconomics, Economics

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