Question

question 1

building a global presence expands an organizations scale of operations, enabling it to realize:

economies of scale

economies of scope

factors of production

its international development stage

Explanation:

🆕 New Concept Discovered: Economies of Scale vs. Scope
Saving money by producing more of the same thing.

Step 1: Analyze the key terms in the question

The question states that building a global presence expands an organization's scale of operations.

• Scale of operations refers to the overall size or volume of a business's production activities.
• When a company expands its scale (produces more of the same goods or services on a larger, global level), it can spread its fixed costs over a larger number of units.

Step 2: Define the options

Let's look at what each choice means to find the best fit:

• Economies of scale: This occurs when a business saves money on costs by growing larger and producing a higher volume of goods. The cost per individual item goes down as the total volume of production goes up.
• Economies of scope: This occurs when a business saves money by producing a wider variety of different products using the same operations, rather than just producing more of one product.
• Factors of production: These are the inputs used to make goods or services (like land, labor, and capital), not the cost-saving result of expanding.
• Its international development stage: This is a phase of growth, not a direct financial or operational benefit realized from expanding the scale of operations.

Step 3: Match the concept to the question

Because the question specifically highlights expanding the scale of operations, the direct benefit the organization realizes is economies of scale.

Answer:

economies of scale