Multinational firms gain from their global presence in the following ways except:
A) Rising marginal costs of production
B) Economies of Scale
C) Low-cost labour in foreign countries
D) Spreading R&D expenditures over global sales

Question

Quizplus · Accepted Answer

Multinational firms benefit from economies of scale, low-cost labor in foreign countries, and spreading R&D expenditures over global sales. However, they do not benefit from rising marginal costs of production, which can reduce profitability.

Multinational Firms Gain from Their Global Presence in the Following