3. DFI to Achieve Economies of Scale. Bear Co. and Viking, Inc., are automobile manufacturers that desire to beneﬁt from economies of scale. Bear Co. has decided to establish distributorship subsidiar- ies in various countries, while Viking, Inc., has de- cided to establish manufacturing subsidiaries in various countries. Which ﬁrm is more likely to ben- eﬁt from economies of scale?

3. DFI to Achieve Economies of Scale. Bear Co. and Viking, Inc., are automobile manufacturers that desire to beneﬁt from economies of scale. Bear Co. has decided to establish distributorship subsidiar- ies in various countries, while Viking, Inc., has de- cided to establish manufacturing subsidiaries in various countries. Which ﬁrm is more likely to ben- eﬁt from economies of scale?

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter13: Direct Foreign Investment

Section: Chapter Questions

Problem 5ST

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