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    Gap: Global Expansion into Rome, Italy

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    In a thorough business plan response for the clothing industry, please answer the following questions.

    What is the role of the Economies of Scale in the expansion of Gap, Inc into Rome, Italy?

    How does language and education play a role into Gap, Inc's Rome, Italy expansion?

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    Role of the Economies of Scale in the expansion of Gap, Inc into Rome, Italy

    Hirschey (2003) noted that economies of scale exist when long-run average costs decline as output expands. According to him, there are factors that may give rise to economies of scale such as labour specialization and technology-related factors. Highly skilled workers may be hired by large firms and with them; large volume of production is facilitated. This results to low cost per unit.

    In relation to technology, highly sophisticated processes that are implemented through the use of highly specialized equipment may also facilitate higher production level resulting to low average cost per unit.

    Economies of ...

    Solution Summary

    The global expansion into Rome, Italy is examined.