When considering the impact of external economies of scale on trade, we should expect that they would lead to:

A) an expansion of trade because more firms would be supported in the relevant industry, and this would be conducive to more trade globally. B) higher prices for the exporting country because this country could take advantage of its comparative advantage and reap at least some of the benefits from this advantage. C) trade dominance by the country best able to utilise these economies. D) a collapse of trade because they would drive prices so low that no firms would be able to make any profit. E) none of the above.

Justify chosen answer