Economies of Scale + Costs

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5 Terms

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Economies of Scale

Cost savings when production increases and average cost per unit decreases

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Types of Economies of Scale

Purchasing managerial financial marketing and technical efficiencies

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Hidden Costs of International Business

Environmental damage worker exploitation unsafe factories poor wages

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Social Costs of International Business

Loss of culture inequality dependence on foreign companies ethical concerns

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Sustainability Concerns

Companies must consider long-term environmental and social impacts when trading globally