Economics 9708 · AS & A Level · 7.8

7.8 — practice question

A multinational company aims to reduce costs and increase profits. Which option would be the least helpful in enabling the multinational to meet these objectives?

  • Aachieving a near monopoly status to control outputs and prices
  • Blocating the firm’s home base in a country with a low level of corporation tax
  • Coperating as a member of a cartel with production quotas
  • Downing subsidiary firms in different countries to achieve economies of scale

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