To Fully Benefit from Economies of Scale, an MNC Should

Multiple Choice

To fully benefit from economies of scale, an MNC should:

A) establish a subsidiary in a new market that can sell products produced elsewhere, which allows for increased production and thus possibly greater efficiency.
B) establish a subsidiary in a market that has relatively low costs of labor or land.
C) establish a subsidiary in a market where raw materials are cheap and accessible.
D) participate in a joint venture in order to learn about a production process or other operations.