The process whereby firms reduce their production costs by taking advantage of international differences in the prices of inputs and international similarities in preferences is referred to as the
A) strategic opportunity concept.
B) new international economics of scale.
C) global dictum.
D) transnational cost theorem.

Question

Quizplus · Accepted Answer

The new international economics of scale refers to firms reducing production costs by leveraging international differences in input prices and similarities in consumer preferences, allowing them to achieve economies of scale on a global level.

The Process Whereby Firms Reduce Their Production Costs by Taking