Which of the following is least likely to be a hindrance to the expansion plans of the Margin company?

The Margin company has completed an environmental scan of the Malaysian business environment to determine the feasibility of its expansion plans into Malaysia. It utilized the tools of SWOT analysis, PESTLE analysis, and Porter’s 5 forces to accomplish the scan.

Which of the following is least likely to be a hindrance to the expansion plans of the Margin company?
A . language and cultural barriers
B . reengineering its product offerings
C . navigating tariff, trade, and travel regulations
D . economies of scale

View Answer

Answer: D

Explanation:

Economies of scale are the cost advantages that enterprises obtain due to their increased scale of operation, and are typically measured by the amount of output produced. A decrease in cost per unit of output enables an increase in scale. Economies of scale is a significant advantage that companies obtain as it refers to cost reductions that occur when companies increase production (to service increased markets)