year. However, if a country has only one or two large factories producing cars, and no international trade, then

consumers in that country would have relatively little choice between kinds of cars (other than the color of the

paint and other nonessential options). Little or no competition will exist between different car manufacturers.

International trade provides a way to combine the lower average production costs that come from economies

of scale and still have competition and variety for consumers. Large automobile factories in different countries

can make and sell their products around the world. If General Motors, Ford, and Chrysler were the only players

in the U.S. automobile market, the level of competition and consumer choice would be considerably lower than

when U.S. carmakers must face competition from Toyota, Honda, Suzuki, Fiat, Mitsubishi, Nissan, Volkswagen,
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