Which of the Following Strategies Enables a Company to Obtain

question 14

Multiple Choice

Which of the following strategies enables a company to obtain the strongest differentiation advantage in foreign markets?

• A) Multidomestic
• B) Unrelated diversification
• C) Global
• D) International

---

Definitions:

Economies of Scale

Cost advantages that a business obtains due to expansion, leading to a reduction in the average cost per unit through increased production.

Diseconomies of Scale

The situation in which a business grows to a point where the costs per unit increase, opposed to saving costs, often due to managerial inefficiencies or complexity.

Constant Returns to Scale

A situation in which increasing the amount of all inputs used in production by a certain factor results in output increasing by the same factor.

Economies of Scale

Cost advantages that enterprises obtain due to their size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale.