What is Economy of scale

Logistics is important in the service sector, even more so in international trade, a vital part of the economy. The delivery of raw materials and intermediate goods to manufacturers, and final goods to consumers, requires effective transport and management of the process. From this point of view, it is important to examine the economic dimension of logistics and transportation activities. This chapter clarifies logistics activities and mentions their place in economic disciplines. The economic analysis of the logistics sector is discussed in two dimensions as micro and macro scales. Effective factors in the development of an international logistics sector are explained.