The following approaches help MNCs reduce costs except ________.
A) Seeking economies of scale
B) Sourcing resources and operations globally
C) Standardizing products and services
D) Complying with local rules

Question

Quizplus · Accepted Answer

Complying with local rules may actually increase costs for MNCs as they may have to adapt to different regulations in different countries, leading to additional expenses. A, B, and C, on the other hand, are commonly used approaches for MNCs to reduce costs. Seeking economies of scale allows MNCs to produce goods (or services) in large quantities, leading to lower costs per unit. Sourcing resources and operations globally allows MNCs to take advantage of lower costs in different regions while standardizing products and services helps to streamline internal processes, leading to increased efficiency and lower costs.

The Following Approaches Help MNCs Reduce Costs Except ________