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Please help with the following problem in at least 300 words.
The smaller the company, smaller the financial risk in globalization. How about other risks like competition, regulatory forces, cost per sale, etc? How can one explain that some of the most successful global brands belong to mega-corporations such as GE, Coca-Cola, Pepsi, Nestle, Siemens, Sony, etc..
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Solution Summary
This solution helps describe the risks of small firms. The explanation is given in 300 words.
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Problem: The smaller the company, smaller the financial risk in globalization. How about other risks like competition, regulatory forces, cost per sale, etc? How can one explain that some of the most successful global brands belong to mega-corporations like GE, Coca-Cola, Pepsi, Nestle, Siemens, Sony, etc..
Solution:
Smaller companies do not have the capital nor the credit resources to implement economies of scale. Those large companies minimalize production costs through mass production. They also have advertising budgets to ...
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