ABSTRACT
This paper deals with the optimum size of firm in a world of nations of various size and the optimum size of the nation in a world of firms of various size. It is assumed that it is neither possible nor desirable, at this juncture in history, to have the world one nation, with a single set of laws governing business activity, or for all firms to be of world size, selling in all regional markets. It is evident, however, that firms are getting bigger and that countries are subject to two pressures: one for integration with other countries-at least in economic matters-and one for separation of parts with different values, largely cultural, religious, language and the like. It is not obvious, however, that there is any one optimum economic size for the nation or the firm, not that the various functions discharged by the firm and the nation should all be conducted on the same scale.
