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This is an excellent example of the effects of economies of scale can have. When coupled with innovation, there can be very powerful results

This article is an article raising awareness of negative externalities, however, it does have one example going on in Singapore that exemplifies negative externalities. They plan tear down a woodland to build an international school. The negative externality is due to tearing down trees. The example the writer gives is that the residents around the woodland will have to pay more money for A.C because of the rising temperatures due to less trees around them. 

The Japanese automobile maker Nissan announced a couple years ago its plans for a new completely electric car, the Nissan Leaf. However, sales in the United States have been fairly low, only selling 10,000 of the cars in 2012. The reason for the small amount of sales is believed to be caused by its high price, due to an expensive and large battery back in the car, and the fact that the car has a small 80 mile range. In hopes to increase sales, the company is beginning to start production here in the United States. Producing the product closer to where it will be purchased will reduce production costs for the company, allowing it to decrease the price of the car and leading, hopefully, to an increase in demand.

Nissan is opening up a production plant in the U.S. to produce their car, the Leaf electric car. This is the first production plant. The short term is the building of the plant, which should decrease unit costs because they will no longer need to transport the cars to the U.S. The long term is the plan to create new technology to improve the car (battery, charging, etc.) and hopefully increase the demand, which could reduce unit costs even further. 

Economies of scale is the increase in efficiency as a company gets bigger. In this case the economy of scale is the creation of larger shipping containers. The great thing about scales of economy is that it has lowered the production cost of products such as the creation of t- shirts for some companies. However as companies have more products to they needed bigger containers to transport their goods. As the supple of t- shirts increases the size of the ship that transports the goods needs to increase in size as well. Maersk lines , the world's biggest shipping container company has decided to increase the size of his ships. The company plans to build 20 ships with a capacity of carrying 18,000 twenty-foot equal units. The company does this out of efficeny in transportation and gas cost. The larger the ship the more it can carry and the less times the ship will have to travel back and forth to transport goods. The increase in ship size than is an example of the economies of scale when bigger = more efficient.

This article talked about how VW company decide to use one billion dollars to build LEED Platinum to make their car 25% cleaner. In the short run the production cost increased one billion. Since the car will get cleaner, the demand should increase. 

This article talks about how Fresno's supply of the raw material required to make concrete, asphalt, road base and other building products is decreasing quickly. Since this raw material is used by a majority of industries, the decreased supply will have a significant effect.

This article is about how the aggregate supply in Fresno County is reducing due to the lack of reserves of raw materials such as mines. The aggregate reserves is less than 11 percent of the 50 year demand, and mining operations are estimated to have less than 10 years to end. If mines can run out, so can oil and gas. We should be alarmed that our aggregate supply of country might also decrease due to lack of oil.

Telecom, Vodafone and Telstra have announced a deal to build a new undersea telecommunications cable between Auckland and Sydney, which should dramatically increase the amount of internet data able to be sent to and from New Zealand. The total cost of the cable is expected to be less than US$60 million ($70.9m).

The Cuban government will give subsidies to help rebuild the many homes that were damaged by Hurricane Sandy. Building materials will be marked half-price, and for those with low income, subsidies will be provided to cover the entire cost of the materials.

This article talks about the rising tensions in the middle east and its effect on the price of oil in the world. As the middle east supplies most of the world with oil, the recent demonstrations in Libya and Egypt, and the sanctions on Iran are causing oil prices to rise. The threat of higher prices due to the fact that only a few countries control the limited oil supply in the world is causing increased pressure on the United States to release their oil supplies.

I like how you identified that all of this forces the U.S. to consider releasing their oil supplies. Some problems with this are that it is currently not possible to do so in the areas where oil is most abundant. After the B.P. oil spill, the current administration put a time ban on all off-shore drilling and new construction. If this ban were to be lifted, companies like B.P., Shell, and Marathon would begin constructing new refinement plants and drilling facilities immediately, which would significantly reduce the price of oil at home. When some people here this, their inclination is to say "the government has good reason to do this, look at what happened in the gulf, it is better to ere on the side of caution," but the sad thing is, these companies have put forth revised safety plans as well as contingency plans that have all been approved, but legally, they can do nothing. The companies own the land / water as well, which in my mind makes the fact that they are prohibited to build on land that they own that has never been part of a reserve or park seem a tad bit anti-constitutional, but until the piece of legislation is overturned, prices will continue to rise.

Thousands Protest: This sub article talks about the high demand of water, these farmers are so poor and the only wealth they have is the water from these river streams which help them grow crops. With plans to build new coal power plants, these farmers are fearing the scarcity of water.