To fully benefit from economies of scale, an MNC should: a.participate in a joint venture in order to learn about a production p

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To fully benefit from economies of scale, an MNC should: a.participate in a joint venture in order to learn about a production p

rocess or other operations. b.establish a subsidiary in a market where raw materials are cheap and accessible. c.establish a subsidiary in a market that has relatively low costs of labor or land. d.establish a subsidiary in a new market that can sell products produced elsewhere, which allows for increased production and thus possibly greater efficiency.

Business

1 answer:

worty [1.4K] · Answer 1 · 2023-08-16T15:36:43+03:00

A multinational corporation will fully benefit from economies of scale when its establish a subsidiary in a new market that can sell products produced elsewhere which allows for increased production and thus possibly greater efficiency.

<h3>What is an economies of scale?</h3>

This refers to a situation whereby the average costs per unit of output decrease with the increase in output being produced by a firm.

Hence, it is agreed that any multinational corporation will be able to fully benefit from economies of scale when its establish a subsidiary in a new market that can sell products produced elsewhere.

Therefore, the Option D is correct.