Firms that operate internationally are able to reduce the costs of value creation because they realize greater cost economies from experience effects by serving an expanded global market from a central location.

Question

Quizplus · Accepted Answer

By serving an expanded global market from a central location, firms can reduce costs through economies of scale and experience effects such as better production techniques, improved supply chain management, and increased efficiency in logistics and distribution. This can lead to lower production costs and increased competitiveness in the international market.

Firms That Operate Internationally Are Able to Reduce the Costs