When Nestle`, a Swiss food company, enjoys economies of scale by considering European, U.S., and Japanese markets together as its primary market it is using the
_________________________ argument.
A) economies of scale
B) market expansion
C) market contraction
D) technology power
E) economies of scope

Question

Quizplus · Accepted Answer

Nestle is using the economies of scope argument, which refers to utilizing resources and capabilities across different product lines, markets, and geographies to achieve cost savings and increase efficiency. In this case, Nestle is taking advantage of shared resources and knowledge across European, U.S., and Japanese markets to reduce production and distribution costs.

When Nestle`, a Swiss Food Company, Enjoys Economies of Scale