One of the goals of globalization is to reduce costs by _____.
A) charging a lot more for product sold
B) using price skimming techniques of increasing prices for brand name merchandise
C) dumping surplus in receptive markets
D) pooling production or exploiting factor costs or capabilities within a system

Question

Quizplus · Accepted Answer

Pooling production or exploiting factor costs or capabilities within a system allows companies to reduce costs by taking advantage of cheaper labor, materials, or technology available in certain countries or regions. This can result in lower prices for consumers and increased competitiveness for companies. The other options of charging more, using price skimming, or dumping surplus would not reduce costs and could potentially harm a company's reputation or relationships with customers and stakeholders.

One of the Goals of Globalization Is to Reduce Costs