Optimal economies of scale in the international market for a standardized product derive from
A) the ability to have production facilities similar to those already used in the home market.
B) effective investment in research and development.
C) access to a low-cost labor force in the host market.
D) rapid advances in new technology with unique demands in each host market.

Question

Quizplus · Accepted Answer

Optimal economies of scale in the international market for a standardized product derive from the ability to have production facilities similar to those already used in the home market. This helps in reducing costs and increasing efficiency as companies can replicate their proven production processes and techniques in different markets. This also helps in maintaining consistent product quality across multiple markets. Effective investment in research and development, access to a low-cost labor force in the host market, and rapid advances in new technology with unique demands in each host market can also contribute to achieving economies of scale, but they may not be as critical as having similar production facilities.

Optimal Economies of Scale in the International Market for a Standardized