To Fully Benefit from Economies of Scale, an MNC Should

question 43

Multiple Choice

To fully benefit from economies of scale, an MNC should:

• A)establish a subsidiary in a new market that can sell products produced elsewhere.
• B)establish a subsidiary in a market that has relatively low costs of labor or land.
• C)establish a subsidiary in a market where raw materials are cheap and accessible.
• D)participate in a joint venture in order to learn about a production process or other operations.

---

Definitions:

Depolarized

A state in which the membrane potential of a neuron becomes less negative, making the neuron more likely to fire an action potential.

MRI Scans

Imaging tests that produce high-resolution images of the body's internal organs and tissues using strong magnetic fields.

London Taxi Drivers

Refers to a study that showed the posterior hippocampus of London taxi drivers was significantly larger than that of their non-taxi driver counterparts, suggesting that navigation experience can change brain structures.