Expanding the global presence of a firm automatically increases its scale of operations.

Question

Quizplus · Accepted Answer

Expanding company global presence also automatically increases its scale of operations, providing it with a larger revenue and asset base. Such an increase in revenues and asset base potentially enables a firm to attain economies of scale. This provides multiple benefits, including the spreading of fixed costs such as Research and Development over a larger volume of production. Examples include the sale of Boeing commercial aircraft and Microsoft operating systems in many foreign countries.

Expanding the Global Presence of a Firm Automatically Increases Its