Working in multiple international markets can provide firms with:a. new learning opportunities, particularly in terms of research and development activities.b. location advantages, including access to larger markets.c. economies of scale and learning, as well as access to larger markets.d. enhanced research and development activities, alongside entry into larger markets.

Social Studies · High School · Tue Nov 03 2020

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Working in multiple international markets can provide firms with:

c. economies of scale and learning, as well as access to larger markets.

  • When firms expand their operations into international markets, they can benefit from economies of scale, which means that as production increases, the cost per unit of production tends to decrease. This is due to the spread of fixed costs over a larger number of units and often increased bargaining power with suppliers. Moreover, operating in various international markets provides opportunities for learning and innovation, as firms are exposed to new customer preferences, techniques, and competitors. These experiences can lead to improvements in products and processes. Additionally, access to larger markets increases the potential customer base, thus leading to potentially higher revenues.

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