Global Economies of Scale Can Be Realized By

question 20

Multiple Choice

Global economies of scale can be realized by:

• A) restricting the expansion of overseas sales.
• B) limiting the utilization of production facilities.
• C) curbing bargaining power with suppliers.
• D) decreasing cost savings through learning effects.
• E) spreading the fixed costs associated with developing.

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Definitions:

Annually

Concerning an event that takes place annually.

Simple Interest

Interest calculated only on the principal amount, or on that portion of the principal amount that remains unpaid, not including interest on interest.

Rate of Interest

The percentage of principal charged by the lender for the use of its money.

Future Value

The value of an investment at a specific future date, based on its current value and anticipated growth rate.