Firms diversify internationally to achieve economies of scale.

Name: Firms diversify internationally to achieve economies of scale.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is true. By diversifying internationally, firms can increase their market size and production capacity, which can lead to lower average costs per unit and thus economies of scale. Additionally, international diversification can reduce risks associated with operating in a single market, such as fluctuations in demand or regulatory changes.

Firms Diversify Internationally to Achieve Economies of Scale