Question

The large multinational beverage corporation, IDG, has entered 100 different markets around the globe. It has discovered a variety of bottlers and retailers to process and sell its drinks at a lower price which increases IDG’s revenue The company is taking advantage of which benefit of globalization in business?

Answer 1

The benefit of globalization in business that IDG is taking advantage of is lower production costs through economies of scale.

Step-by-step explanation:

The benefit of globalization in business that the multinational beverage corporation, IDG, is taking advantage of is lower production costs through economies of scale. By entering 100 different markets around the globe and finding bottlers and retailers who can process and sell its drinks at a lower price, IDG is able to increase its revenue. This is because the company can produce its beverages in larger quantities, which reduces per unit production costs and allows for greater profitability.

Answer 2

Globalization of Production

Step-by-step explanation:

IDG has taken benefit of globalization of production, where a company can when inserted in a global market, source its goods and services from any country has a better offer in quality and price. The company can choose around the globe the best provider for its needs (in this case the need to bottle and sell drink), maximizing in that way its revenue.