Which of the following is a reason for globalizing operations?
A) reduce costs with a reduction in effectiveness of the supply chain
B) improve the supply chain while increasing overall costs
C) understand markets
D) reduce stockholder approval ratings
E) increase costs at the risk of stockholder approval ratings

Question

Quizplus · Accepted Answer

Globalizing operations allows companies to understand different markets and tailor their products and services to meet the needs of those markets, thereby increasing their competitiveness and potential for success. A reduction in costs or improvement in the supply chain may also be a benefit of globalization, but understanding markets is a key motivator. Increasing costs or reducing stockholder approval ratings are not typical reasons for globalizing operations.

Which of the Following Is a Reason for Globalizing Operations