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 gain advantages from economies of scale, low-cost labor in foreign countries, and spreading R&D expenditures over global sales. However, rising marginal costs of production are a disadvantage that multinational firms face due to factors such as transportation costs, tariffs, and regulations that increase costs as production expands globally.

Multinational Firms Gain from Their Global Presence in the Following