Internationalization of a large firm can lead to:
A)A reduction in economies of scale
B)A decrease in marketing expenses
C)A increase in unit costs of its products
D)An increase in its bargaining power versus its suppliers

Question

Quizplus · Accepted Answer

Internationalization can increase the bargaining power of a firm versus its suppliers, as the firm becomes less dependent on any one supplier and gains leverage in negotiating pricing and terms. A reduction in economies of scale is unlikely, as international expansion may provide opportunities for further scale and efficiencies. Marketing expenses may increase with internationalization, and unit costs may also increase due to factors such as transportation and tariffs.

Internationalization of a Large Firm Can Lead To