Petal Inc.,a Californian apparel manufacturer purchases raw cotton in bulk from a well-established firm in Manchester.The firm also borrows from a local bank which issues loans at lower rates of interest.It distributes its apparels through its independent boutiques as well as via retailers in large shopping malls as well as tiny stores in countries like Italy,France,Singapore,Malaysia,and India.These steps have enabled the firm to achieve cost benefits.These cost benefits are attributed to which of the following external market forces?

Question

Quizplus · Accepted Answer

Economic factors include worldwide economies of scale in manufacturing and distribution, steep learning curves, worldwide sourcing efficiencies, rising product development costs, and significant differences in host-country costs. Petal Inc. has been successful in its operations by achieving economies of scale, by expanding its sales to different continents, by bulk buying, and by obtaining loans at lower rates of interest.

Petal Inc,a Californian Apparel Manufacturer Purchases Raw Cotton in Bulk from from a Well-Established