When a Company Expands Its Sales Volume Through International Expansion,it

question 23

Multiple Choice

When a company expands its sales volume through international expansion,it can realize cost savings from economies of scale through all of the following except

• A) spreading fixed costs over its global sales volume.
• B) utilizing its production facilities more intensely.
• C) increased bargaining power with its suppliers.
• D) learning effects associated with higher volume.
• E) improved responsiveness.

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Definitions:

Income Effect

The change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.

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The payment made periodically by a tenant to a landlord for the use and occupancy of an apartment.

Chewing Gum

Chewing gum is a type of flavored and chewable confectionery designed to be chewed without being swallowed.

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Ornamental items made of gold, often used as a form of adornment or investment.