Article's summary in (international economic field) Essay

Article's summary in (international economic field) - Essay Example 2). However, using buildings as an example, it was evident that the economies of scale seem to become inapplicable up to a certain extent where the construction of higher buildings apparently becomes more costly and inefficient. In cases of large organizations, the article revealed that organizations that have continued to expand through mergers and acquisitions could only be evaluated in terms of viably realizing economies of scale through the concept of the cost function. As noted, the relationship requires the need â€Å"to estimate how output levels influence the costs of production in a competitive industry† (Land of the corporate giants par. 6). However, due to differences in inputs and outputs as determined by the kind of industry some organizations are categorized in, the cost function is a challenging way to gauge the applicability of economies of scale. Overall, large organizations have been reported to justify continued merger and acquisitions by the ability to limit and restrict competitors and to dictate market prices. The article â€Å"IMF warns of threat to global economies posed by austerity drives† written by Elliot and published online in The Guardian presented issues that have been recommended by 11 international leaders headed by the International Monetary Fund (IMF) with a recommendation of boosting much needed global economic growth. As revealed, the current practices exemplified by different developed countries focus on protectionism and trade barriers which do not encourage international economic expansion. As indicated, after reviewing the economic indices and thrusts exhibited by various governments, it was evident that more focus was centered on â€Å"decelerating global growth and rising uncertainty; high unemployment, especially youth unemployment, with all its negative economic and social consequences; potential resort to inward-looking protectionist policies† (Elliot par.