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Which One of the Following Statements Does Not Provide an Accurate

Question 18

Multiple Choice

Which one of the following statements does not provide an accurate discussion of the three primary factors motivating companies to expand internationally?


A) During the Industrial Revolution, many companies felt pressured toward building larger factories so as to seize the benefits to be gained from new technologies and production methods.
B) Investment abroad provides the opportunity to obtain raw materials, labour, and other resources at the lowest possible cost.
C) A company's market power may be increased because of broad knowledge of the cultural, social, and economic factors that affect customers.
D) Smaller volume production has provided companies a way to achieve the lowest possible cost per unit of production.
E) Companies that maintain a presence in multiple countries have marketing power and synergy greater than those with less foreign presence.

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