Which of the Following Is the Key Driver of Global

question 33

Multiple Choice

Which of the following is the key driver of global consolidation in the motor industry?

• A) The desire to offer cars in every possible segment of the market
• B) A desire on the part of executives to run the biggest firm in the industry
• C) A need to achieve scale economies in the value chain to remain cost competitive
• D) A fear of being left behind by rivals who are globalising

---

Definitions:

Segment Margin

The contribution margin of a specific segment of a business, excluding common fixed costs, to assess the segment's financial performance independently.

Traceable Fixed Expenses

Fixed costs that can be directly associated with a specific business segment or a product.

Variable Expenses

Billing that adjusts based on the production volume or the number of sales, encompassing materials and labor expenses.

Business Segments

Distinct parts of a company that are engaged in different types of businesses, each of which may generate its own revenues and expenses.