A company can be compelled to globally integrate its activities to seek cost reduction through scale economies.

Name: A company can be compelled to globally integrate its activities to seek cost reduction through scale economies.
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Question

Quizplus · Accepted Answer

Global integration can lead to cost reduction through scale economies, as the company can centralize certain activities like production, procurement, and logistics which can lead to cost savings. This is one of the main reasons why companies opt for global integration.

A Company Can Be Compelled to Globally Integrate Its Activities