Explain how globalisation can increase operational efficiency?

There are many ways in which globalisation can help increase operational efficiency, for example; economies of scale. Globalisation can help lower production costs as a result of a wide spread production, by spreading production over greater units of output economies of scale can be achieved. Thus increasing efficiency through offering lower operational costs. Globalisation can also result in an investment in capital. Thus directly effecting production on a wide scale. Therefore increasing productivity, increasing operational efficiency.

EA

Related Business Studies A Level answers

All answers ▸

What is price elasticity of demand?


How does quantitative sales forecasting compare to qualitative sales forecasting?


In what way does the seasonality affect operations of a busness?


What is product diversification?