A 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 above are potential gains

Question

Quizplus · Accepted Answer

All of the choices (A, B, and C) provide potential gains for a MNC from its global presence. By spreading R&D expenditures and advertising costs over their global sales (A), the MNC can achieve economies of scale and reduce costs. Pooling global purchasing power over suppliers (B) allows the MNC to negotiate better prices and terms, leading to cost savings. Finally, utilizing their technological and managerial know-how globally with minimum additional costs (C) enables the MNC to improve efficiency and effectiveness across its global operations. Therefore, all of the above are potential gains for a MNC from its global presence.

A MNC May Gain from Its Global Presence by