To fully benefit from use of foreign raw materials:
A) establish a subsidiary in a market where raw materials are cheap and accessible.
B) sell the finished product to countries where raw materials are more expensive.
C) establish a subsidiary in a new market that can sell products produced elsewhere.
D) establish a subsidiary in a market where raw materials are cheap and accessible AND sell the finished product to countries where raw materials are more expensive.

Question

Quizplus · Accepted Answer

By establishing a subsidiary in a market where raw materials are cheap and accessible, the company can benefit from lower production costs. By selling the finished product to countries where raw materials are more expensive, the company can earn higher profits due to the higher selling price. This will allow the company to fully benefit from the use of foreign raw materials.

To Fully Benefit from Use of Foreign Raw Materials