The sale of Boeing commercial aircraft and Microsoft operating systems in many countries enables these companies to benefit from
A) higher prices in their domestic markets.
B) reducing their exposure to currency risks.
C) economies of scale.
D) optimizing the location for many activities in their value chain.

Question

Quizplus · Accepted Answer

Expanding the global presence of a company automatically increases its scale of operations, providing it with a larger revenue and asset base, which potentially enables a firm to attain economies of scale. One advantage is the spreading of fixed costs such as research and development over a larger volume of production. Examples include the sale in many foreign countries of commercial aircraft by Boeing and operating systems by Microsoft.

The Sale of Boeing Commercial Aircraft and Microsoft Operating Systems