An MNC may gain from its global presence by
A)spreading R&D expenditures and advertising costs over their global sales.
B)pooling global purchasing power over suppliers.
C)utilizing their technological and managerial know-how globally with minimum additional costs.
D)all of the options

Question

Quizplus · Accepted Answer

All of the options are correct.

A) By spreading R&D expenditures and advertising costs over their global sales, an MNC can reduce its costs and increase its profits.
B) Pooling global purchasing power over suppliers can lead to better prices and terms, which can also reduce costs and increase profits.
C) Utilizing their technological and managerial know-how globally with minimum additional costs can help MNCs to achieve economies of scale and scope, as well as improve their overall efficiency and competitiveness.

Therefore, all of these advantages can help an MNC to gain from its global presence.

An MNC May Gain from Its Global Presence by