Which of the Following Conditions Is Most Favorable to Reap

question 3

Multiple Choice

Which of the following conditions is most favorable to reap gains from global scale economies?

• A)Low demand for local responsiveness
• B)High pressures for cost reduction
• C)Lack of universal needs
• D)National differences in accepted business practices
• E)High pressure to delegate production to domestic subsidiaries

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Definitions:

Environmental Opportunities

External factors or situations in the business environment that a company could exploit to its advantage.

Vertical Integration

A growth strategy to expand by acquiring upstream suppliers or downstream distributors.

Suppliers

Businesses or individuals that provide goods or services to another entity under terms specified in a contract.

Forward Vertical Integration

A business strategy where a company expands its operations by acquiring or establishing control over subsequent stages in its production or distribution process.