Which of the following would be considered a cost driver?

There are many different drivers of globalisation.

Which of the following would be considered a cost driver?
A . improvements in transport technology
B. to increase value for stakeholders
C. trading rules abroad less stringent
D. opportunity to build economies of scale

View Answer

Answer: D

Explanation:

Economies of scale is a cost driver for globalisation. Note option 2 isn’t correct- had this said increase profit for stakeholder (rather than value) then that might have been a cost driver, but value doesn’t necessarily mean costs. See p.32 of the study guide. Note- Drivers of Globalisation can also come up as a Drag and Drop question