Question

Karl Jahaz Corp., an automobile company, has many business units across the globe. Although the company has reached saturation in the domestic market, it continues to generate substantial revenue by selling its old-model, light commercial vehicles in a few countries. In this case, which of the following is achieved by the globalization of the company?

a. Extension of product's life cycle
b. Deduction of production costs
c. Higher profits by lowering prices
d. Greater economies of scale

Answer 1

a. Extension of product's life cycle

Step-by-step explanation:

Extension of the product life cycle means the strategies that are followed to increase the product life or its service prior go into the decline stage.

These strategies involved price change, place, promotion, adding new attributes to the existing product, etc

So according to the given situation, the option a is correct