Economies of scale can be achieved by international expansion because a company can lower its average unit cost, better utilize its production facilities, and increase its bargaining power with suppliers.

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With international expansion, a company can increase its production volume, which leads to a reduction in average unit cost due to economies of scale. Moreover, a company can better utilize its production facilities by extending its operations to different locations. Additionally, by increasing its size and global presence, a company can negotiate better terms and pricing with suppliers, leading to an increase in its bargaining power.

Economies of Scale Can Be Achieved by International Expansion Because