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Eva8 [605]
3 years ago
10

If a company is experiencing increasing pressures for cost reduction for its products, which of the following courses of action

should it consider?
a. sell licenses to produce the products internationally.
b. explore opportunities for exporting or create a wholly-owned subsidiary within a country.
c. establish a joint venture with a foreign company.
d. pursue a franchising model for the company.
Business
1 answer:
Natasha_Volkova [10]3 years ago
7 0

Answer: explore opportunities for exporting or create a wholly-owned subsidiary within a country

Explanation:

When a company is experiencing increasing pressures for cost reduction for its product, the course of action should be considered by the company is to explore opportunities for exporting or create a wholly-owned subsidiary within a country.

This is necessary to bring about economies of scale which in turn leads to lesser production cost and cheaper prices for the products.

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<em>The solution is explained in the explanation section below</em>

Explanation:

Solution:

(a) <em>In the economy there exist 100 workers. the wage of reservation to take risky job for worker 1 is $1 and $2 for worker -2. only 10 jobs is seen as risky.</em>

<em>The curve of supply is shown as upward which starts from 1, because the price of reservation for the first worker is 1 and 2 is for the second worker and it keeps going on like that.</em>

<em>The demand curve is seen as elastic in a perfect form, due to the fact that there are only 10 risky jobs.</em>

<em>The 10th worker price is $10, because is wage differential is $10</em>

<em>(b) The worker's altitude towards taking risky jobs has changed, because of the advertisement. the wage reservation is -10$ for the first worker and -$9 for the second worker.</em>

<em>Th jobs seen as risky is available are only 10</em>

<em>However, as a result of the campaign advertisement, the curve of supply moves down and the market equilibrium gets is gotten when the wage differential is -$1. most people on the daily basis dislike risk, but the market determines those risky jobs that will pay less than the safe ones. </em>

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3 years ago
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Answer:

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