Global economies of scale can be realized by:
A) restricting the expansion of overseas sales.
B) limiting the utilization of production facilities.
C) curbing bargaining power with suppliers.
D) decreasing cost savings through learning effects.
E) spreading the fixed costs associated with developing.

Question

Quizplus · Accepted Answer

Global economies of scale can be realized by spreading the fixed costs associated with developing. This means that as production levels increase, the fixed costs can be spread across a larger number of units, resulting in a lower cost per unit. This is known as economies of scale and is a key advantage of global expansion. Restricting the expansion of overseas sales, limiting the utilization of production facilities, curbing bargaining power with suppliers, and decreasing cost savings through learning effects would all work against achieving economies of scale.

Global Economies of Scale Can Be Realized By