Large transportation costs can offset cost reductions attributable to the exploitation of economies of scale in manufacturing. Group of answer choices True False

Question

Business

Hanna Hensley

4 February, 07:30

Large transportation costs can offset cost reductions attributable to the exploitation of economies of scale in manufacturing. Group of answer choices True False

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Answers (1)

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Sam Miller · Answer 1

True

Explanation:

This is one of the major reason why companies expands its manufacturing department in countries with greater free trade agreements and with geographical importance. This makes the company more oriented towards controlling transportation costs, import duties and other costs and increasing the benefits arising from the economies of scale.