Which of the following strategies can be employed to enhance the efficiency of an MNE?
A) pursue scale and scope economies.
B) pursue scope economies alone.
C) benefit from inter-country differences in factor costs.
D) pursue both scale and scope economies, as well as benefit from inter-country differences in factor costs.

Question

Quizplus · Accepted Answer

The ratio of the value of a firm's outputs to the value of its inputs explains its efficiency.All three initiatives of scale and scope economies as well as benefiting from inter-country differences in factor costs will help the MNE in cost reduction.Therefore they all enhance the MNE's efficiency.

Which of the Following Strategies Can Be Employed to Enhance