Question

Which of the following is an advantage that larger businesses have over smaller businesses in the global economy? Explain.(1 point)
Responses

Larger businesses benefit from foreign investment because they are able to acquire funds through the sale of physical assets.
Larger businesses benefit from foreign investment because they are able to acquire funds through the sale of physical assets.

Larger businesses benefit from economies of scale because they can make large bulk purchases and specialize to a high degree.
Larger businesses benefit from economies of scale because they can make large bulk purchases and specialize to a high degree.

Larger businesses benefit from economies of scale because they are able to improve their production through technological advances.
Larger businesses benefit from economies of scale because they are able to improve their production through technological advances.

Larger businesses benefit from foreign investment because they are able to acquire funds through the sale of securities.

Answer 1

Larger businesses benefit from economies of scale because they can make large bulk purchases and specialize to a high degree. This advantage allows them to lower their production costs per unit and offer competitive prices to consumers. Additionally, larger businesses have more bargaining power with suppliers and can negotiate better deals. Overall, economies of scale give larger businesses a significant edge in the global economy by allowing them to operate more efficiently and effectively.